The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) says consumers need to brace for a flurry of price hikes in 2022 – including food items that have already climbed far above headline inflation.

The group’s monthly Household Affordability Index shows that food prices are up 9% over the last 12 months, with a significant jump between December 2021 and January 2022.

With food inflation already well above inflation, the PMBEJD warned that 2022 sets the stage for further price hikes, setting up a triple-blow for consumers who have to contend with:

Petrol prices likely increasing based on rising crude oil prices;

Eskom applying for a 20.5% hike in tariffs;

• Food prices being driven up by both these costs, as well as local climatic and agricultural constraints.
• Petrol prices likely increasing based on rising crude oil prices;
• Eskom applying for a 20.5% hike in tariffs;

The PMBEJD warned that food inflation, particularly for items and in areas that affect the country’s poorest, currently far outstrips headline inflation and food inflation figures reported by Stats SA.

This is particularly concerning as most salary and wage increases – including the national minimum wage – are based on CPI, which is leading to an imbalance in what people are paid, and what it costs for them to survive.

Rising food prices

According to the PMBEJD index, the average cost of the Household Food Basket in January 2022 is at R4,401.02. The basket comprises 44 core food items most frequently purchased by lower-income households, who make up most households in the country.

These were the most significant changes, where prices increased or declined by 10% or more.

Food prices December 2021 to January 2022 – big changes

Month on month, the price increase was 2.9% from December 2021. Of the 44 food items tracked, 31 increased in price, seven decreased, and six stayed the same.

PMBEJD said that a 2.9% month-to-month spike is high. In monetary terms, it averaged R125.08. The year-on-year price of the Household Food Basket – January 2021 to January 2022 – stands at an average of 8.6%, with a rand-value increase of R349.82.