Johannesburg - DA Shadow Minister of Finance, Dr Dion George, says that the Essential Food Pricing Monitoring (EFPM) report released highlights that basic and essential food items have seen steep price increases in the past year.
He said that the investigation scrutinised the prices of essential food products such as bread, cooking oil, maize meal, rice, flour, margarine, and pasta at the retail and wholesale levels.
"From January to December 2022, white and brown bread retail prices rocketed by 20% and 19%, respectively. The price of maize meal surged by 32%, jumping from R26.62 to R35.29. These steep price hikes hit poor and vulnerable South Africans the hardest.
“In times of inflation, market-friendly fiscal policies are necessary to cushion the impact of rising prices, yet the government continues to neglect, or even mention, the cost of living crisis," said George.
He said that the DA has a clear strategy to alleviate pressure on vulnerable households.
“We call on the government to immediately consider expanding the zero-VAT food basket to include essential items such as bone-in chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee, and soup powder.” he said.
The CEO of South African cash-back platform SavvySaver, Dov Slowatek, says that recent data shows that consumers are resorting to new cost-saving strategies such as cash-back and discount platforms as food prices and essential household items are reaching alarming heights.
"Consumers have reached a crisis point of trying to stretch their budget to accommodate sky-rocketing costs and are looking for tangible, budget-friendly remedies to close the affordability gap," said Slowatek.
He said that price pain has resulted in a demand for brands to provide support through solutions like cash-back rewards to enable consumers to cope with ongoing inflation.
"In turn, partnering brands have a dedicated avenue of talking to their shoppers with access to unique granular data insights and increased brand loyalty, resulting in a win-win for all.
"Our aim is to give consumers a financial lifeline through our cash-back offering, providing consumers with breathing space and greater flexibility in managing their finances by putting cash back in their pockets," added Slowatek.
Deon Nobrega, CEO of Earned-Wage Access platform Paymenow, says blue-collar workers often spend a higher proportion of their income on necessities such as food, housing, and transportation.
"These are the types of goods and services that tend to experience the most significant price increases during periods of inflation, which means that blue-collar workers may feel the effects more acutely," said Nobrega.
He said that inflation cuts into wages, erodes purchasing power, and increases pressure on an already besieged workforce.
"Inflation is a burden on everyone, but it’s a burden that is much easier to bear if you have the flexibility to choose how to spend your income.
"If you’re able to reduce the cost of your groceries each month by choosing to forego luxuries and seek out specials, you may be able to keep spending in check. But there’s little flexibility at a lower income level to adjust the groceries that go into your basket. Whatever the staples cost, you have to buy them," he said.
The Star