SABC News - Food prices likely to rise even further in 2016: Study:Friday 5 February 2016

Food prices likely to rise even further in 2016: Study

Friday 5 February 2016 17:37

Neliswa Mavundla

Researchers found that basic foods such as cooking oil, margarine, maize meal and flour have gone up by above 15%.

Researchers found that basic foods such as cooking oil, margarine, maize meal and flour have gone up by above 15%.(SABC)

The National Agricultural Marketing Council predicts that food prices are likely to rise even further in the next coming months.

Cash-strapped consumers say they have no choice but to cut down on the not so necessary food products, and prioritize the basics.
Some are even considering changing their diet.

Johannesburg resident, Sandra Powell says she normally spends out about R3 500 to cover all her basic groceries. However, she now has to cut back.

"Where I used to have a full trolley, I am left with half a trolley. You have to watch what you buy, no luxuries. It’s just the bare minimal because of the price increase. You have got to carefully budget for the meat because the prices are very high, the vegetables have gone very high."

Honeydew resident, Charis Reid says she and her family of five are thinking of changing their diet so that they can have plenty to eat.
"Last year, I was spending between R 2 500 and R 2 800 a week on groceries. Everything has gone up since then it’s ridiculous. We will just have to cut down on the types of food we buy, all the proteins and stuff, we will have to introduce more bread and maize- that kind of thing. So, we will just have to change the way we are eating."

The National Agricultural Marketing Council conducted a study on how much a basic basket of food would cost an ordinary consumer. The basket contains 23 food products that an average consumer eats each month.

The Council's Simphiwe Ngqangweni says they found that basic foods such as cooking oil, margarine, maize meal and flour have gone up by above 15%.   "If you check that basket between 2014 December and 2015 December the cost of that basket has gone up by 6.6% which means that food prices are on a rise. However, I must emphasize that we are nowhere near the period when we had food inflation of double digits which was back in 2008-2009 during the height of the economic crises."

Ngqangweni says food prices are likely to escalate in the coming months. "If you look back at 2009, I am looking at my graph, the highest point in the graph is about 25% but this was due to the economic crisis but since the economy has recovered slightly from that period, the prices have gone down and have fluctuated over the past two three years until about another highest point which was about 16% and in fluctuations there has been a general downward trend to a point where we are right now which is 5.9% according to the official figure from Stats SA but this in our view is bound go up to 10% in the next three to six months if stay as they are."




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