The cost of a basket of goods bought by most South Africans has increased sharply over the last couple of years
Category: Economics, Public Finances, Consumers
Date: 7 July 2022
Date: 7 July 2022
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The price of a basket of goods bought regularly by South Africans has gone up significantly in recent months. We compare the cost of a basket of goods over three different time periods and show why consumers are struggling to make their ends meet.
With the cost of basic goods spiraling out of control and interest rates on the increase, there seems to be no choice but for consumer to either buy less goods, spend less money on non essentials and try and force their employers to give wage increases which matches the rate of inflation so that their relative purchasing power doesn't decline. |
Grocery store
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So lets introduce the basket of goods we will be looking at. Statistics South Africa collects prices on a wide varierty of items and publishes the average price paid for certain goods across the country as a whole. We selected items most South African consumers would buy regularly. They are listed below
- Rice, 1 Kilogram
- Bread flour, 2.5 Kilogram
- Beef chuck, Per Kilogram
- IQF chicken portions, 2 Kilogram
- Bacon, 200 Gram
- Cheddar cheese, Per Kilogram
- Eggs, For 6
- Margarine spread (in a tub), 500 Gram:
- Sunflower oil (incl canola oil), 750 Millilitre
- Oranges, Per Kilogram
- Apples, Per Kilogram
- Spinach/morogo, Per Bunch
- Carrots, 1 Kilogram
- Potato crisps, 125 Gram
- Instant coffee, 250 Gram
- Fizzy drinks - bottle, 2 Litre
- 6 Beers, 330 Mililitre
- Paraffin, 750 Millilitre
- Diesel, 50 Litre
- Shampoo, 400 Millilitre
- Bar Of Bath Soap, 175 Gram
- Toilet Paper, Pack Of 2 Ply 9 Rolls
- Tooth Paste, 100 Millilitre
Next up we will look at the cost of this basket of items across three different time periods. January 2017. March 2022 (just before Covid-19 lock downs hit South Africa) and in May 2022.
January 2017
January 2017
- Rice, 1 Kilogram: R 18.65
- Bread flour, 2.5 Kilogram: R 31.41
- Beef chuck, Per Kilogram: R 73.67
- IQF chicken portions, 2 Kilogram: R 61.47
- Bacon, 200 Gram: R 28.78
- Cheddar cheese, Per Kilogram: R 98.54
- Eggs, For 6: R 14.73
- Margarine spread (in a tub), 500 Gram: R 24.87
- Sunflower oil (incl canola oil), 750 Millilitre: R 22.48
- Oranges, Per Kilogram: R 21.49
- Apples, Per Kilogram: R 18.24
- Spinach/morogo, Per Bunch: R 8.34
- Carrots, 1 Kilogram: R 10.57
- Potato crisps, 125 Gram: R 13.75
- Instant coffee, 250 Gram: R 34.83
- Fizzy drinks - bottle, 2 Litre: R 15.07
- 6 Beers, 330 Mililitre: R 71.16
- Paraffin, 750 Millilitre: R 24.30
- Diesel, 50 Litre: R 638.50
- Shampoo, 400 Millilitre: R 47.74
- Bar Of Bath Soap, 175 Gram: R 12.46
- Toilet Paper, Pack Of 2 Ply 9 Rolls: R 55.94
- Tooth Paste, 100 Millilitre: R 11.66
March 2020
So from January 2017 to March 2020, the cost of this basket increased by R236.54. So over a 39 month period this basket increased by R236.54 or R6.06 a month
- Rice, 1 Kilogram: R 19.90
- Bread flour, 2.5 Kilogram: R 28.67
- Beef chuck, Per Kilogram: R 89.69
- IQF chicken portions, 2 Kilogram: R 68.95
- Bacon, 200 Gram: R 30.40
- Cheddar cheese, Per Kilogram: R 106.06
- Eggs, For 6: R 15.93
- Margarine spread (in a tub), 500 Gram: R 27.53
- Sunflower oil (incl canola oil), 750 Millilitre: R 22.78
- Oranges, Per Kilogram: R 32.16
- Apples, Per Kilogram: R 22.32
- Spinach/morogo, Per Bunch: R 12.07
- Carrots, 1 Kilogram: R 12.47
- Potato crisps, 125 Gram: R 16.44
- Instant coffee, 250 Gram: R 35.33
- Fizzy drinks - bottle, 2 Litre: R 20.01
- 6 Beers, 330 Mililitre: R 81.12
- Paraffin, 750 Millilitre: R 26.71
- Diesel, 50 Litre: R 786.00
- Shampoo, 400 Millilitre: R 54.10
- Bar Of Bath Soap, 175 Gram: R 12.40
- Toilet Paper, Pack Of 2 Ply 9 Rolls: R 58.24
- Tooth Paste, 100 Millilitre: R 15.91
So from January 2017 to March 2020, the cost of this basket increased by R236.54. So over a 39 month period this basket increased by R236.54 or R6.06 a month
May 2022
So from March 2020 to May 2022, the cost of this basket increased by R532.05. So over a 27 month period this basket increased by R532.05 or R19.71 a month.. This clearly shows how much the cost of the average groceries bought by consumers has climbed over a very short period of time. And it has been increasing at more than triple the Rand value per month, than what it did prior to March 2020.
So did Covid-19 and supply chain issue contribute to the current cost of living crises South Africans are experiencing? Well yes it has some part to play in it, but the war in Ukraine has certainly contributed significantly to the high inflation environment South Africans are currently experiencing.
- Rice, 1 Kilogram: R 25.01
- Bread flour, 2.5 Kilogram: R 40.26
- Beef chuck, Per Kilogram: R 108.93
- IQF chicken portions, 2 Kilogram: R 86.80
- Bacon, 200 Gram: R 34.73
- Cheddar cheese, Per Kilogram: R 126.52
- Eggs, For 6: R 19.90
- Margarine spread (in a tub), 500 Gram: R 36.29
- Sunflower oil (incl canola oil), 750 Millilitre: R 40.68
- Oranges, Per Kilogram: R 22.07
- Apples, Per Kilogram: R 17.36
- Spinach/morogo, Per Bunch: R 12.70
- Carrots, 1 Kilogram: R 13.23
- Potato crisps, 125 Gram: R 16.59
- Instant coffee, 250 Gram: R 45.56
- Fizzy drinks - bottle, 2 Litre: R 21.19
- 6 Beers, 330 Mililitre: R 89.88
- Paraffin, 750 Millilitre: R 29.75
- Diesel, 50 Litre: R 1 183.50
- Shampoo, 400 Millilitre: R 63.11
- Bar Of Bath Soap, 175 Gram: R 13.98
- Toilet Paper, Pack Of 2 Ply 9 Rolls: R 60.19
- Tooth Paste, 100 Millilitre: R 19.01
So from March 2020 to May 2022, the cost of this basket increased by R532.05. So over a 27 month period this basket increased by R532.05 or R19.71 a month.. This clearly shows how much the cost of the average groceries bought by consumers has climbed over a very short period of time. And it has been increasing at more than triple the Rand value per month, than what it did prior to March 2020.
So did Covid-19 and supply chain issue contribute to the current cost of living crises South Africans are experiencing? Well yes it has some part to play in it, but the war in Ukraine has certainly contributed significantly to the high inflation environment South Africans are currently experiencing.