Food Basket Barometer – March 2025

Food Inflation Statistics

 

Month-on-Month Comparisons Jan 2025 vs. Feb 2025

The Household Affordability Index reported the cost of the average household food basket decreased by R120,48 (-2,2%) from January 2025 to R5 313,22 in February 2025.

  • Frozen chicken portions decreased by R1,34 (-0%) per 10kg, month-on-month.
  • Chicken feet decreased by R5,18 (-6%) per 2kg.
  • Gizzards decreased by R2,31 (-3%) per 2kg.
  • Chicken livers decreased by R3,49 (-4%) per 2kg.

 

Notable Price Increases Month-on-Month

Margerine 5%
Stock cubes 3%
Apples 2%

 

Notable Price Decreases Month-on-Month

Carrots -13%
Bananas -11%
Butternut -8%
Onions -7%
Potatoes -7%
Chicken feet -6%
Beef -5%
Peanut butter -5%
White bread -5%
Eggs -4%

 

Year-on-Year Comparisons

The Household Affordability Index reported the cost of the average household food basket increased by R35,92 (0,7%) in February 2024 to R5 313,22 in February 2025

  • Frozen chicken portions decreased by R5,91 (-1%) per 10kg, year-on-year.
  • Chicken feet decreased by R1,72 (-2%) per 2kg.
  • Gizzards decreased by R0,89 (-1%) per 2kg.
  • Chicken livers decreased by R0,71 (-1%) per 2kg.

 

Notable Price Increases Year-on-Year

Maize meal 18%
Green Peper 15%
Sugar Beans 11%
Samp 11%
Cabbage 9%
Apples 8%
Soup 7%
Tea 7%
Tomatoes 7%
White sugar 6%
Stock cubes 6%
Bananas 5%

 

Notable Price Decreases Year-on-Year

Oranges -42%
Butternut -17%
Potatoes -6%
Carrots -15%
Beef and Wors -4%
White bread -4%
Eggs -3%
Full cream milk -3%
Cake Flour -2%

 

VAT on Essential Food Items

The Household Affordability Index states that 22 out of 44 foods in the total household food basket are subject to VAT, making up 47% of the total household food basket.

VAT on the total household food basket came to R324,01 in February 2025, amounting to 6,1% of the household food basket.

This is nearly the same cost as the requirement for an average low-income household of 30kg of maize meal per month (R341,52 in February 2025).

 

Vat Budget Announcement 2025

The recent budget announcement for 2025 detailed increases on VAT rates and expanded the list of zero-rated food items.

ChickenFacts recently reported that starting 1 May 2025, zero-rated foods now include edible offal from sheep, poultry, goats, swine, and bovine animals; heads, feet, bones, tongues; dairy liquid blend; and tinned or canned vegetables.

However, clarification is needed as there is confusion around the classification of the announced food items to be zero-rated.

A Moneyweb article pointed out that the draft legislation expanding the zero-rated VAT list has caused confusion that may have unintended consequences.

National Treasury limited canned vegetables to beans and peas, contrary to Finance Minister Enoch Godongwana’s budget speech.

Despite efforts to include bone-in chicken, it was excluded, while luxury meat items might be zero-rated.

Luxury products like oxtail and beef tongue will be zero-rated according to the draft rates bill. Edible offal from domesticated cattle, including various parts like livers and trotters, are included.

The draft includes chicken offal such as heads, feet, and giblets but excludes offal soup mix, which will be standard-rated at 15.5% this year and 16% next year.

Charles De Wet, tax executive from ENSafrica, noted that the South African Revenue Service (SARS) relies on the Agricultural Product Standards Act for food item definitions when interpreting zero-rated items.

The proposed VAT Act definition is broader than the Agricultural Product Standards Act, which excludes chicken heads and feet as offal.

Retailers face risks in deciding what should be zero-rated, as incorrect decisions could mean losses for poor households.

Confusion aside, zero-rating these items may benefit lower-income households, provided that benefits are passed down to consumers.

The question remains whether suppliers and retailers will pass the relief on to consumers, as there are insufficient controls in place to ensure that this happens.

ChickenFacts will continue to observe these developments closely and will provide updates on significant advancements as they occur.

 

 

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