South Africans are feeling the pinch and small businesses are noticing it. The latest Household Affordability Index released recently showed food prices fell slightly in March 2026 both month-on-month and year-on-year.
According to the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), which tracks 44 basic foods across 47 supermarkets and 32 butcheries, the average cost of the Household Food Basket in March was R5 328.53. This is a 1% decrease from February and a small year-on-year decline of 83 cents.
The director of PMBEJD, Mervyn Abrahams said that of the 44 foods tracked, 14 increased in price, 29 decreased and one stayed the same. Foods that fell included rice, chicken feet, beef, butternut and apples. Tea, soup, tomatoes, cabbage and peanut butter rose by 5% or more.
“Food baskets in Johannesburg, Durban, Cape Town, Springbok, Pietermaritzburg and Mtubatuba decreased in price while the Mthatha food basket increased,” Abrahams said.
Even with these small changes, households are still under pressure. The cost of a basic nutritional basket for a family of four is R3 667.72, leaving many workers with a shortfall of R1 289.
“If all the remaining money went to buy food, then for a family of four it would provide R594.66 per person per month. This is 30% below the national food poverty line of R855 per person per month,” Abrahams said.
Food small businesses caught in the middle
The pressure on household budgets is affecting small businesses that sell food. Spaza shops and market vendors are seeing customers reduce spending.
In Pretoria, spaza shop owner, Mmathapelo Modise said customers buy only what they need and sometimes ask for credit because cash is tight.
“People still need food but they buy smaller portions or cheaper items. That means our sales drop even though demand is still there,” she said.
Businesses that rely on daily spending are most at risk when households cut back.
Rising costs on the horizon
Electricity and transport already cost the average worker R2 941 per month, over 55% of their wage. With fuel price increases in April and interest rates unchanged, both households and small businesses face even tighter budgets.
Tando Ngibe, senior manager at Budget Insurance said while any relief on food prices is welcome, the broader financial strain is clear.
“With the addition of impending fuel price increases from 1 April and interest rates remaining unchanged, means many households will be left with even less disposable income,” Ngibe said.
