Slight relief as prices take dip

Prices of the contents of this month’s basic food basket went down, with the exception of potatoes which remained the same and eggs, which now cost R2.41 more per dozen.

This is good news for the cash-strapped shopper who will be faced with a VAT increase of one percentage point come April 1. And although most – with the exception of chicken – of the items monitored by Saturday Dispatch monthly food basket survey are exempt from VAT, the overall monthly food bill is sure to soar.

This month, we once again trawled the aisles of three national supermarket chains, noting the prices of eight pantry staples and choosing the lowest of these for our food basket graph.

This month our supermarket excursions revealed the following:

• The price of 750ml of sunflower oil dropped by R2 from R17.49 to R15.49;
• A 1kg tray of chicken pieces cost R48.99 per kg last month and R45.50 this week, a price drop of R3.49;
• At R6.99, a loaf of brown bread now costs R3 less than the R9.99 it cost last month;
• Mielie meal which cost R8.99 a month ago, has gone down by R2 for a 1kg pack which now costs R6.99.
• Milk is also cheaper, having dropped by 50 cents to R9.99 for a 1-litre sachet;
• The price of 1kg of potatoes is the same at R10.99;
• Eggs are more expensive. A dozen cost R29.58 last month and have gone up by R2.41 to R31.99; and
• Butternut is R1 per kilogram cheaper than last month at R8.99.

It is also interesting to note that, with the exception of eggs, which cost a significant R9.99 less per dozen a year ago, the prices of all the food basket staples have fallen. Mielie meal, for example, cost R5 more a year ago, the price of sunflower oil cost R3.50 more and potatoes were R2.51 more per kilogram 12 months ago.

And, while the unpopular VAT increase looms following former finance minister Malusi Gigaba’s budget speech, the cabinet has announced that it is considering zero-rating more items.

On Thursday, new Communications Minister Nomvula Mokonyane said ministers had contemplated on the increase at a Wednesday meeting and were looking at ways to protect the pockets of the poor from the VAT increase.

However, while such a move could bring some relief at the tills, the impact of the drought on agriculture could negatively affect the price of wheat and grains and drive up the prices of fruit and vegetables and possibly poultry products.

This is according to Western Cape minister of economic opportunities Alan Winde, who said that the farming industry had taken several knocks aside from the drought after being hit by avian flu, thunderstorms and hail. — barbarah@dispatch.co.za