The cost of living crisis for South Africans continues to spiral after data released on Wednesday showed that the cost of a basic grocery food basket had increased by 8.3% in just a year.
This was according to the January 2024 Household Affordability Index and Key Data, compiled by the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD).
The index showed that in January 2024, the average cost of a household food basket was R5 324,86. Month-on-month, the food basket increased by R86,66 (1,7%), from R5 238.20 in December 2023 to R5 324,86 in January 2024.
Year-on-year, it increased by R407.44 (8,3%), from R4 917.42 in January 2023 to R5 324.86 in January 2024.
The food items that increased the most in price in January were potatoes by 13% and tomatoes by 14%.
Meanwhile, curry powder, spinach and green peppers saw a price increase of 6%, carrots and soup increased by 7% and stock cubes, beef, white sugar and rice increased by 5%.
Statistics South Africa (StatsSA) said the headline consumer price index (CPI) pulled back in December, easing to 5.1% from 5.5% in November and 5.9% in October.
This was the lowest reading in four months, edging closer to the South African Reserve Bank's preferred 4.5% midpoint of the 3–6% target range.
Neil Roets, the CEO of Debt Rescue and a consumer debt expert, yesterday voiced grave concerns about the ongoing financial challenges for South African consumers.
“Despite a slight easing in inflation in late 2023, escalating prices in food, healthcare, and hospitality are alarming. Significant hikes in essentials like meat, eggs, and dairy, impede access to basic nutrition. There were major increases in housing, utilities, and hospitality, signalling a deepening cost of living crisis. Although transport costs showed some relief, the forecaste rise in petrol and diesel prices in February 2024 adds to the burden, emphasising the need for comprehensive strategies to mitigate these financial strains,“ Roets told Business Report.
This as the National Minimum Wage sits at R25.42 an hour and R203.36 for an 8-hour day.
In January 2024, with 22 working days, the maximum National Minimum Wage for a General Worker wasR4 473.92.
“The wage workers earn is not just to sustain themselves alone, it is used to support the entire family. For black South African workers, one wage typically must support 3.9 people. Dispersed in a worker’s family of 4 persons, the NMW, is reduced to R1 118.48 per person – this is below the upper-bound poverty line of R1 558 per person per month,” PMBEJD said in a statement.
The January 2024 cost of a basic nutritional food basket for a family of four persons is R3 741.46.
“On our calculations, using Pietermaritzburg-based figures for electricity and transport, and the average figure for a minimum nutritional basket of food for a family of four, puts electricity, and transport, taking up 59,6% of a worker’s wage (R2 666.92/R4 473.92),” the group said.
“Food is bought after monies for transport and electricity have been paid for or set aside (leaving only R1 807.00 – for food and everything else), and so in January 2024, PMBEJD calculates that workers’ families will underspend on food by a minimum of 51,7% (having R1 807 left after transport and electricity, and with food costing R3 741.46).
“In this scenario there is no possibility of a worker being able to afford enough nutritious food for her family. If the entire R1 807 all went to buy food, then for a family of four persons, we are looking at R451.75 per person per month. This is below the food poverty line of R760,” the PMBEJD said.
BUSINESS REPORT