South Africa: Food prices to rise
SOUTH AFRICA - Meat is meat but people won’t eat as their pockets begin to shrink.Rocketing food prices are forcing the big-spending middle class to cut back on clothing and luxury items to feed their meat- eating habits.
Lower-income earners, however, are substituting meat - which includes mutton, beef, chicken and pork - for less expensive items such as vegetables and eggs.
These trends have been observed by economist Lullu Krugel, who has done extensive research on food inflation relative to a worker’s salary.
Her study is substantiated by Statistics South Africa research which looks at what the different income groups spend on food. It shows:
- The higher-income expenditure group spends R82,000 a year and more on food, with 17% of their total salary going towards food.
- The majority of organised labour falls within the middle- income expenditure group. They spend between R18,000 and R36,500 a year on food, or 25% of their total income.
- The lower-income expenditure group spends below R12,000 a year or 52% of their total earnings on food.
Source: Sunday Times