Food Prices Will See Dramatic Hike Following Fuel Price Increase and Concerns Over Festive Season

• Last week's sharp fuel price hike will cause food prices in South Africa to shoot up, making the festive season unaffordable for many people
• Meat and fresh produce are among the products whose prices will be affected by the price hike
• Global shipping issues and supply chain challenges have been cited as additional reasons for the food price increase

DURBAN - The recent sharp increase in the fuel price has resulted in a proposed rise in food prices before the end of the year. South African consumers are anxious that they won't be able to afford to celebrate the festive season.

Pietermaritzburg Economic Justice and Dignity (PMBEJD), a group advocating for a fair political economy, has warned South Africans that November and December will be financially trying months due to the increase in consumer goods prices.

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Fuel is necessary for the transportation and production of food, which is why the fuel price increase will lead to a rise in food prices, IOL reports.

South Africa's shopping basket price soars

According to Business Insider, meat and fresh produce will be the two food products that will be most affected by the food price increase. FNB senior agricultural economist, Paul Makube, said that frequency of distribution is amongst the top reasons why these specific food categories will be targeted.

Lamb and mutton prices remain lower than what they cost last year, but chicken and beef have seen a sharp rise in prices. Class A beef has increased by 3.5% from 2020 and class C by 8%. However, chicken prices have seen the biggest increase as prices are 22% higher than last year.

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Besides the fuel price hike, the current challenges facing global shipping also affect food prices. The supply chain issue has meant that manufacturers have not received raw products on time, thereby causing a demand surplus, which pushes prices up.

South Africans furious amid financial pressure

Previously, Briefly News reported on the petrol price in South Africa rising by R1.21 per litre and diesel by R1.48.

This dramatic price hike is due to the rand weakening against the dollar. The Energy Department issued a statement on Monday night explaining how this happened.

He said that it was contingent on the rand/dollar exchange rate. Between 1 and 27 October, the exchange rate was R14.81 to the dollar, whereas it was R14.57 previously. This, in turn, affected the prices of petrol, diesel and paraffin.

Source: Briefly News