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Unaffordable – beef prices contribute to food inflation uptick while headline inflation remains low
Unaffordable – beef prices contribute to food inflation uptick while headline inflation remains low

Daily Maverick

time3 days ago

  • Business
  • Daily Maverick

Unaffordable – beef prices contribute to food inflation uptick while headline inflation remains low

The annual rate for food and non-alcoholic beverages increased to 4.8% from 4.0% in April, the highest point since March 2024, when the rate was 5.1%. Food & non-alcoholic beverages is the only category that contributed to the monthly increase in the Consumer Price Index. The monthly change in food and non-alcoholic beverages was 1.1%, following a 1.3% rise in April. Maverick Citizen has been tracking the prices of 14 basic food items that a consumer can buy with R370, the amount of the Social Relief of Distress (SRD) grant. The food basket hovers above R400, making it unaffordable for those who receive the grant as their only source of income. Our basket decreased by R8 and sits just under R400 – still higher than the SRD's R370, keeping in mind the basket does not include transport to withdraw the money, and electricity to cook the food. The food and non-alcoholic beverages category is at 4.8%, contributing 0.9 of a percentage point to headline inflation, according to the Consumer Price Index (CPI) released on Wednesday, 18 June. For all urban areas, annual consumer price inflation was at 2.8% in May 2025, unchanged from 2.8% the previous month. The CPI increased by 0.2% month on month in May 2025. The main contributors to the 2.8% annual inflation rate were: Housing and utilities (4.5%, contributing 1.0 percentage point) and alcoholic beverages and tobacco (4.3%, contributing 0.2 of a percentage point). In May 2025, the annual inflation rate for goods was 1.8%, up from 1.7% in April 2025. Services was 3.6%, down from 3.8% in April 2025. In the latest Household Affordability Index, the month-on-month average cost of the foods prioritised and bought first in the household food basket increased by R31.77 (1.1%) from R2,923.58 in April 2025 to R2,955.34 in May 2025. Year on year, the average cost of the foods prioritised and bought first in the household food basket increased by R89.53 (3.1%) from R2,865.81 in May 2024 to R2,955.34 in May 2025. 'The data show that the core foods contribute 54% of the total cost of the Household Food Basket. At an average cost of R2,955.34 in May 2025, these foods are relatively very expensive in relation to the total money available in the household purse to secure food. These foods must be bought regardless of price escalations. The high cost of core staple foods results in a lot of proper, nutritious food being removed from the family plates. The consequences of high costs on the core foods have a negative impact on overall household health and wellbeing, and child development,' the Index says. Beef continues to push meat inflation higher Stats SA says that meat, specifically beef, is a key factor behind the rise in food inflation. The annual rate for meat jumped from 3.0% in April to 4.4% in May. In April, monthly increases for beef products ranged from 6.2% to 11.9%. In May, notable monthly increases were recorded for beef steak (up 4.5%), stewing beef (up 2.5%) and beef mince (up 1.7%). A widespread outbreak of foot-and-mouth disease, combined with higher feed prices, contributed to the rise in beef inflation. The impact is trickling down to the pockets of consumers who will be hit by price increases. In June 2024, the average price for Class A beef was R55.45 per kg. In May 2025, the average price for Class A beef was R68.01 per kg, which is 6.3% higher than in April 2025. Year on year average prices for Class A increased by 23.2% in May 2025 compared with May 2024, according to the latest Beef Monthly Report. Workers Needless to say, people who receive grants are unable to purchase enough food in general, but nutritious food specifically. This also affects workers who have to prioritise getting to work, so transport, electricity and debt go first before food is bought. The Household Affordability Index said the national minimum wage was a 'poverty wage — it hurts workers, it reduces productivity in the workplace, and slows down economic growth.' This is based on their three scenarios using real-life examples of how much a taxi fare is, the average salary and other factors in specific towns, such as in Pietermaritzburg. The maximum wage of R4,836.72 in May 2025, when disbursed in a family of four persons, is R1,209.18. 'This is below the upper-bound poverty line of R1,634 per capita per month. Set at such a low level, the [national minimum wage] works to institutionalise the low-baseline wage regime and lock millions of workers into poverty. Small annual increments off such a low wage base (in rand-value), and which do not reflect inflation levels as experienced by workers, nor the actual cost of worker expenses (including not projecting inflation forward for workers in the entire 2025/26 term), means that workers on the [national minimum wage] are getting poorer and poorer each year,' the index says. The minimum shortfall on food for a family is 45% in May 2025. After paying for transport and electricity, workers are left with R2,113.75. If all this money went to food, then for a family of four, it would provide R528.44 per person per month. The Food Poverty Line is R796 per person per month. Rising pressure According to the Food Inflation Brief, inflationary pressures could rise in the coming months because of uncertainty around the policy direction of the US government, and its potential impact on the exchange rate remains a key factor influencing price movements. 'Emerging market currencies, such as the rand, typically come under pressure during periods of global uncertainty. On a positive note, the rand has recently strengthened against the US dollar ahead of the Treasury's third revision of the local budget and following the crucial bilateral meeting with the US. Although the Treasury did not increase the VAT rate, it did raise the fuel levy; a decision whose impact on consumers will become more pronounced if global oil prices rise and the rand weakens,' the brief says. 'The anticipated rebound in the new summer crop harvest could help ease staple food prices for consumers and also offer some relief to livestock producers through lower feed costs, enabling increased supply. Cost buildup in the value chain due to higher fuel costs may limit the extent of this relief. 'In the livestock and meat sector, animal disease outbreaks remain a critical risk to monitor due to their potential impact on supply and pricing,' the brief says. DM

'We will not be silent': RISE Mzansi marks youth day with bold call to action for SA's youth
'We will not be silent': RISE Mzansi marks youth day with bold call to action for SA's youth

IOL News

time5 days ago

  • Politics
  • IOL News

'We will not be silent': RISE Mzansi marks youth day with bold call to action for SA's youth

RISE Mzansi commemorates Youth Day at the Hector Pieterson Memorial, vowing to continue the fight for dignity, safety, and opportunity for young people. Image: File RISE Mzansi has vowed to continue fighting for the issues that affect South Africa's youth, drawing a direct line between the struggles of 1976 and today's challenges. Speaking at the Hector Pieterson Memorial during a wreath-laying ceremony on June 16, RISE Mzansi National Leader Songezo Zibi MP delivered a scathing indictment of the country's failure to protect and empower young people nearly five decades after the Soweto uprising. 'Today, we stand here, 49 years since Hector Pieterson, Tsietsi Mashinini, and scores more bled and lost their lives for the liberation of this country and its young people. Their fight is far from complete, and the scars of that era still remain,' said Zibi. He said that while legislation like the Basic Education Laws Amendment Act exists, the current school environment remains hostile and dangerous. 'In the last year, there were 42 cases of rape; 96 cases of attempted murder; 1,214 cases of assault GBH; and 376 cases of rape at places of learning,' he stated. Zibi said RISE Mzansi had formally asked the Minister of Basic Education to deliver an Executive Statement in Parliament on June 24 to account for efforts being made to improve school safety and quality. 'The case of little Cwecwe is not an isolated one,' he added, referencing recent tragic incidents involving children. Beyond education, Zibi tackled youth unemployment head-on, condemning the government for presiding over a crisis where 'the youth unemployment rate is close to 50%, or just over 62% if you include young people who have given up on looking for work.' 'These young people are you; the ones gathered here today in the name of Hector Pieterson; they are our family members,' he said, adding that the current R370 Social Relief of Distress (SRD) grant should be transformed into a R35-billion investment in youth economic development. 'Let us fund the future, rather than plastering over our current problems.' He also raised concerns about a 'silent crisis' ravaging communities: gambling addiction. 'You look left, you look right, you see gambling advertising on TV, during sports matches, on social media, and even at Home Affairs,' said Zibi, warning that the addiction among young people aged 25 to 35 is spiraling. RISE Mzansi also highlighted the growing food insecurity affecting over 20 million South Africans, particularly children. 'Twenty-three percent of children suffer from severe hunger, which results in developmental problems such as stunting,' the party said, emphasizing the role of MEC Vuyiswa Ramokgopa in addressing the issue through food empowerment initiatives. Turning to the upcoming National Dialogue, RISE Mzansi expressed concern about the reported R700-million budget. 'The touted R700-million price-tag appears to be excessive,' Zibi said, saying the party would use its parliamentary oversight to ensure financial accountability. The party insists that the dialogue must 'address issues of justice in all its forms' and not 'escape the issue of ethical leadership across society, political, business, civil society, and academia.' 'RISE Mzansi will continue to fight for the South Africa we all deserve, and this cannot be done without working with and listening to young people,' Zibi said. IOL News

Sassa to provide relief vouchers for victims in Eastern Cape
Sassa to provide relief vouchers for victims in Eastern Cape

The Citizen

time12-06-2025

  • Climate
  • The Citizen

Sassa to provide relief vouchers for victims in Eastern Cape

Sassa will provide two special vouchers to bereaved families to help them cope with immediate needs. The South African Social Security Agency (Sassa) will distribute cash vouchers and essential supplies to thousands of families devastated by severe flooding in the OR Tambo District, Eastern Cape. At least 57 people have died due to storms in the province since Monday, following unprecedented weather conditions that brought snowfall, destructive winds, and torrential rain. Sassa Chief Executive Officer Themba Matlou announced the agency's immediate response through its Social Relief of Distress program, mobilising resources to support the thousands of displaced residents whose lives have been turned upside down by the natural disaster. Sassa offers immediate relief operations According to Matlou, the agency has established three operational sites where 229 affected individuals receive daily sustenance through three nutritious meals. The organisation has also distributed 229 vanity packs containing essential personal care items and five specialised baby packs to address the specific needs of infants affected by the catastrophe. Cash voucher distribution plan Looking beyond immediate relief, Sassa has formulated a detailed Disengagement Plan that will distribute cash vouchers to address the short-term financial needs of victims. The comprehensive support package also encompasses two-ply blankets for warmth, individual mattresses to ensure proper rest, and school uniforms for affected students to maintain educational continuity during this challenging period. Recognising the emotional and practical burden on families who have lost loved ones, Sassa will provide two special vouchers to bereaved families to help them cope with immediate needs during their time of grief. ALSO READ: Eastern Cape tragedy: What flood victims need and how you can help Matlou emphasised that the agency's intervention is grounded in legal authority, stating the organisation's mandate stems from the Social Assistance Act to provide support during times of crisis. 'Social Relief of Distress is a temporary provision of assistance intended for persons in such a dire material need that they are unable to meet their families' most basic needs.' Matlou also extended his and the agency's condolences to the bereaved families and wished the injured a speedy recovery. 'We are working very closely with all the relevant stakeholders in the social cluster of the province to ensure that maximum support is given to the distressed families. 'We extend our gratitude to all stakeholders, partners, and community members who continue to support this vital work,' Matlou emphasised. ALSO READ: Mabuyane admits province struggles with disaster management amid weather crisis Scale of Eastern Cape weather devastation The severe weather system that initially excited residents about potential snowfall in the Eastern Cape quickly transformed into a nightmare scenario. What began as anticipation turned to terror as communities faced the full force of nature's fury. Rescue operations are ongoing, with emergency responders reporting that approximately 10 000 people have been displaced from their homes. The infrastructure damage is extensive, with 3 000 homes either damaged beyond repair or completely destroyed. Ongoing humanitarian crisis More than 1 500 individuals have been relocated to temporary accommodation in community halls and other available structures, as authorities work to provide basic shelter for those who have lost everything. The situation remains fluid as rescue teams continue their search operations. Tragically, while many victims have been located and accounted for, search and rescue operations continue for others who remain missing, including children whose families anxiously await news of their whereabouts. NOW READ: Disaster and death in the Eastern Cape: A timeline

Furor over 2025 SASSA grant smartphone access
Furor over 2025 SASSA grant smartphone access

The South African

time10-06-2025

  • The South African

Furor over 2025 SASSA grant smartphone access

The latest 2025 SASSA grant smartphone verification requirements have both political parties and civil society up in arms. Detractors are saying 2025 SASSA grant smartphone necessity is 'unconscionable', given that applicants' monthly bank balance must stay below R624 per month. In case you missed it, starting on Saturday 7 June 2025, all Social Relief of Distress applicants must complete biometric verification. In turn, the Democratic Alliance (DA) and other groups have rejected this requirement. They say you cannot expect R370 SRD grant applicants to have access to a smartphone every month. A 'digital divide' is illustrated by this new verification process. Image: File Of course, the South African Social Security Agency has landed itself on hot water over this issue already in 2025. Specifically, the High Court ruled in January that SASSA could not turn away qualifying applicants simply because of budget constraints. The agency took leave to appeal the decision, and appears to be forging ahead with its exclusionary measures regardless. As such, 2025 SASSA grant smartphone access is becoming a divisive topic for the Department of Social Development. Government recently created the SASSA Services portal. When not offline, it is a useful tool to manage all aspects of your 'core' SASSA grant profile. This includes uploading personal data (ID photos) from your smartphone, free USSD and status checks on the portal. SASSA SRD applicants must apply for and check their status every month. Image: File However, last week's release from the agency insists that you must have a smart ID card and smartphone to access R370-per-month SRD benefits. As a result, those with the old 'green mamba' ID books will likely not pass the online verification process, because there is no digital ID photo loaded with the Department of Home Affairs (DHA). While this has sparked widespread controversy, the agency is defending its tactics, saying biometric verification protects grants from fraud, corruption and identity theft. Unfortunately, the practicality behind such a decision is being described as a growing 'digital divide.' By their very definition, SASSA SRD applicants live below the poverty line, and must prove they have less than R624 in their bank account each month to qualify. A cabinet committee on social welfare has called for SASSA SRD to be extended beyond 2026 for two more years. Image: File With June 2025 SRD payments set to go off in the last week of this month, customer care units are already receiving complaints from those who have failed the process. As such, DA's cabinet committee member for social development, Bridget Masango, reiterates that 2025 SASSA grant smartphone requirements exclude vulnerable applicants. 'With the latest (verification) process announced, the DA is concerned it will exclude many more beneficiaries. These are people who do not have access to the internet, data or the necessary smartphone devices and computing capacity. The department and SASSA should do more to provide volunteers to assist those vulnerable people. Instead of doing their all to improve access to grants, SASSA continuously strives to exclude beneficiaries through all manner of obstacles,' Masango said. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.

SASSA payment dates for July 2025: What you need to know
SASSA payment dates for July 2025: What you need to know

The Citizen

time09-06-2025

  • Business
  • The Citizen

SASSA payment dates for July 2025: What you need to know

SASSA payment dates for July 2025: What you need to know SASSA has announced the payment dates for grant recipients in Pretoria for July. Below are the payment dates for Older Person's, Disability, and Children's grants in July: Old Age Grant: July 2, 2025 Disability Grant: July 3, 2025 Child Support Grant: July 4, 2025 Keep in mind the SASSA grant payments are made on different days depending on the type of grant, so it's important to go to your payment point or ATM only on your designated date. Arriving too early — even a few hours before the new day starts — may result in your payment not reflecting. Always double-check your grant's scheduled payment date to avoid delays or disappointment. All social grants, barring the Social Relief of Distress (SRD) grant, increased in April this year. Delivering the 2025 Budget Speech in Parliament earlier this year, Finance Minister Enoch Godongwana stated that the number of social grant beneficiaries – excluding those receiving the SRD grant – was expected to rise to around 19 million in 2025/26 and 19.3 million in 2027/28 due to a growing population of older persons. Godongwana said that for 2025/26, social grants were allocated approximately R284.7 billion. 'As announced by the President in the State of the Nation Address, the SRD was to be used as a basis for the introduction of a sustainable form of income support for unemployed people. 'The future form and nature of the SRD would be informed by the outcome of the review of active labour market programmes, which was expected to be completed by September 2025. 'The truth was that ours was one of the most comprehensive social safety nets among emerging economies. This reflected our commitment to addressing poverty and inequality, while keeping our spending sustainable,' he said. The grant increases that took effect in April were: Old age grant: increased from R2185 to R2315 War veterans grant: increased from R2205 to R2335 Disability grant: increased from R2185 to R2315 Foster care grant: increased from R1180 to R1250 Care dependency grant: increased from R2185 to R2315 Child support grant: increased from R530 to R560 Grant-in-aid: increased from R530 to R560 In the Budget Review, National Treasury stated that the budget for social grants was increased by R8.2 billion over the medium term to account for higher living costs. 'An amount of R35.2 billion was allocated to extend the payment at the current SRD rate of R370 per month per beneficiary, including administration costs,' the department said. Also read: Is there an outbreak of Staphylococcus in Pretoria? Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here

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