Food prices are likely to go up following the announcement that a 9.4% tariff hike has been approved for Eskom.
The above-inflation tariff increase will raise costs of production and thus drive up the price of many food items. This is because much of farming is electricity-intensive, because it is necessary for processes like irrigation.
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As the costs of farming go up, food prices are forced to increase in order to offset the increase in expenses.
With these tariff hikes alongside the recent increases in fuel taxes, consumers are likely to feel the impact of rising costs of living, according to fin24.
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As a result, the tariff hikes have come under fire from several organisations. The South African Federation of Trade Unions (SAFTU), for example, condemned it as an "assault of the living standards of all South Africans".
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Source: Briefly News