Gauteng leads South Africa in grocery prices for 2025, with Johannesburg the highest. The average household food basket costs R5,313.22. Food inflation is fueled by reliance on imports, trade policy uncertainties, and possible VAT increases. Regional price variations exist with Cape Town and Durban following. Consumers are advised to adopt cost-effective shopping strategies.
In recent data analyzed by the Pietermaritzburg Economic Justice and Dignity (PMBEJD) group, Gauteng has been identified as the province with the highest grocery prices in South Africa for 2025, with Johannesburg deemed the most expensive city, followed by Durban and Cape Town. As of February 2025, the cost of a typical household food basket containing 44 essential items reached R5,313.22, reflecting a minor 0.7% annual increase, although food inflation remains a significant concern for many families, particularly with price hikes observed in 27 tracked items.
Several factors have contributed to the rising grocery costs in the country. Anchor Capital economist Casey Sprake noted that South Africa’s dependence on food imports makes it susceptible to fluctuations in global markets. Furthermore, potential changes in trade policies anticipated with Donald Trump’s return to the presidency may influence food prices through tariffs and economic instability, which has already weakened the rand and increased import costs. Additionally, there are ongoing concerns about a possible increase in Value-Added Tax (VAT), as Shoprite’s CEO, Pieter Engelbrecht, cautioned that this could further affect food affordability amidst existing challenges like power outages and supply chain issues.
Grocery prices differ by region, with Johannesburg residents experiencing the highest costs; the average household food basket in February 2025 was R5,446.07, exceeding the national average by R132.85. In contrast, Cape Town had the lowest basket cost among major cities at R5,250.75, while Durban recorded R5,254.06. Despite a slight decline in Durban’s prices compared to last year, they still rank among the highest nationally.
Although food inflation has tapered since its peak in 2024, the burden of high grocery costs persists for South Africans. Experts advise monitoring exchange rates and trade policies, along with potential VAT developments, as they will likely have substantial implications for food pricing in the upcoming months. In the meantime, consumers are encouraged to practice smart shopping strategies, such as comparing prices, purchasing in bulk, and supporting local markets to better manage their grocery budgets.
In summary, Gauteng remains the most expensive province for groceries in South Africa, with Johannesburg at the forefront. Rising food costs are attributed to factors such as reliance on imports, possible trade policy shifts, and VAT concerns. While grocery prices vary regionally, the overall strain of food inflation continues to affect households. Monitoring market conditions and adopting savvy shopping practices may alleviate some financial pressure for consumers.
Original Source: www.foodandhome.co.za