Business Report Economy

Rising food prices in South Africa: Household Affordability Index for June

Yogashen Pillay|Published
The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) Household Affordability Index food basket for June released on Tuesday was at R5,502.42, indicating an increase in the price of the food basket.

The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) Household Affordability Index food basket for June released on Tuesday was at R5,502.42, indicating an increase in the price of the food basket.

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The prices of affordable foods increased in June in spite of other food price indicators showing that average prices have fallen, adding further financial strain to poorer households.

The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) Household Affordability Index food basket for June, released on Tuesday was at R5,502.42, indicating an increase in the price of the food basket. The Index tracks the prices of 44 basic foods from 52 supermarkets and 36 butcheries. Civil society groups said they are concerned about the increase and the consumer’s ability to buy food.

Mervyn Abrahams, Director of the PMBEJD, said that month-on-month, the average cost of the basket has risen by R23.15 (0.4%). “Year-on-year: The average cost...increased by R59.29.”

Abrahams added that of the 44 foods tracked in the basket, 24 foods increased in price, and 20 foods decreased in price. “Foods in the basket which increased in price in June 2026 by 5% or more include: onions, chicken feet, chicken livers, tomatoes, carrots, and green pepper.

Abrahams said that foods in the basket which increased in price in June 2026 by 2% or more include: sugar beans, samp, soup, Maas, canned baked beans, and apples.

Evashnee Naidu, KwaZulu-Natal regional manager of Black Sash, said that they note with concern the statistics provided by the PMBEJD on the increase to the average cost of food.

“This bears out what social grant beneficiaries and other poor households have been dealing with month-on-month despite the fact that other statistics show a decrease in food inflation. The poorest of the poor have tough choices to make every month about what food they can afford to buy, and having to shop around for the lowest food prices,” said Naidu.

Naidu added that this also determines what people in the most dire circumstances eat. “The global food and supply challenges also exacerbate the cost of food in our country and impact how people can spend their money. Food insecurity has been increasing since the COVID pandemic, and the government needs to put more measures in place to curb this worrying trend.”

Siyanda Baduza, a basic income researcher at the Institute for Economic Justice (IEJ), said that they saw a similar increase in the cost of the food basket reported by the PMBEJD last month. “This is a devastating development for households, especially those in poverty. Taken in context with the increased unemployment rate reported in the 2026 Q1 statistics and the rising fuel prices since April, we are clearly now in a cost-of-living crisis.”

Baduza added that this is difficult to reconcile with the recent announcement of almost R5 billion in underspending on grants for the most vulnerable.

“Most of our social grants now are woefully inadequate in shielding poor people from hunger, falling below all objective measures of need. Underspent amounts in social services should be used to improve those services, not simply returned to the Treasury, where they will likely end up as interest paid to wealthy domestic and foreign bondholders.”

Professor Waldo Krugell, an economist at North-West University, said that the index is 0.4% more than the increase in the broader CPI food basket. “The bigger basket shows no month-on-month increase from April to May, and we are still waiting for that June number. Overall, the rates of increase are muted, but one has to keep in mind that price levels have remained high after the previous bout of inflation. Combine that with stagnant incomes, and many households will feel that they are experiencing an affordability crisis.”

Frank Blackmore, Lead Economist at KPMG South Africa, said that in line with recent fuel cost reductions and a relatively stable Rand South African food price inflation cooled to a 17-month low of 1.6% in June. “Despite this relief, the average cost of the basic 44-item food basket remains high, hovering around R5,452, while a minimum nutritious food basket for a family of four costs approximately R3,787. This is a decline from the previous basket measurement. Notable regional variations also persist; for instance, Mthatha recorded the most expensive basket, while Cape Town offered the cheapest.”

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