THE decision to increase the repo rate will push poor consumers deeper into poverty.
The Pietermaritzburg Economic Justice & Dignity Group released its annual survey Household Affordability Index, which showed that people were spending about R5 000 on food and other household goods.
This is an increase of R40 from last year.
The civil organisation said when the prices of core foods such as maize meal, rice, cooking oil, sugar, frozen chicken mixed portions and tea go up, there is no money to buy nutritious foods.
The organisation said nutritionally-rich foods, such as meat, eggs, peanut butter and maas, are important for health and well-being and strong immune systems.
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“The cost of the foods prioritised and bought first in the Household Food Basket is important. The core foods are bought first and these foods ensure that families do not go hungry whilst ensuring that meals can be cooked,” said the group.
The prices are tracked in 44 supermarkets and 30 butcheries in areas including Soweto, Alexandra, Tembisa and Hillbrow, Gugulethu, Philippi, Khayelitsha, Langa, Delft, Dunoon, KwaMashu, Umlazi, Isipingo, Durban CBD, and Mtubatuba, as well as Springbok and Pietermaritzburg.
The group's co-ordinator, Mervyn Abrahams said: "So, when we look at 10kgs of potatoes over the last year, it has increased by 52%. When we compare the R350 social grant of relief, if you get the grant you can't even buy a loaf of bread each day of the month.”
The Reserve Bank made the shocking announcement of the increase on Thursday, 30 March. The latest hike means the repo rate now stands at 7,75%.
Abrahams said the high cost of core staple foods result in a lot of proper nutritious food being removed off the family plates.
"These foods must be bought regardless of price escalations. The consequences of high costs on the core foods have a negative impact on overall household health and wellbeing, and child development," he said.
General Industries Workers Union of South Africa (Giwusa) said the repo rate increase was an "undeniably regressive decision".
"It appears to be based entirely on the cruel logic of right-wing neoliberal economic theories that put far more weight on the backs of working and middle-class people, already struggling to stay above water," said Giwusa president Mametlwe Sebei.
