november-2022-household-affordability-index

November 2022 Household Affordability Index and Key Data

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Key data from the November 2022 Household Affordability Index

The November 2022 Household Affordability Index, which tracks food price data from 44 supermarkets and 30 butcheries, in Johannesburg (Soweto, Alexandra, Tembisa and Hillbrow), Durban (KwaMashu, Umlazi, Isipingo, Durban CBD and Mtubatuba), Cape Town (Khayelitsha, Gugulethu, Philippi, Langa, Delft and Dunoon), Pietermaritzburg and Springbok (in the Northern Cape), shows that:

  • In November 2022: The average cost of the Household Food Basket is R4835.96.
  • Month-on-month: The average cost of the Household Food Basket increased by R48.13 (1%), from R4787,83 in October 2022 to R4835,96 in November 2022.
  • Year-on-year: The average cost of the Household Food Basket increased by R563,52 (13,2%), from R4272,44 in November 2021 to R4835,96 in November 2022.

The following foods increased in price

Foods which increased in price in November, by more than 4%, include: maize meal, cake flour, samp, onions, chicken feet, beef liver, wors, fish, carrots, apples, oranges, and apricot jam. This month sees a lot of price differences between areas, with a lot of different types of foods spiking. This month, it is the Durban basket that has pushed up the price of the national average basket (The Durban basket increased by R155,09).

  • Joburg saw increases mostly on their vegetables and fruits.
  • Durban saw increases almost across the board in the basket: from the major staples of maize meal (up 17%), flour (up 14%), samp (up 13%), cooking oil (up 7%), to the dairy, meats, onions (up 15%) and spinach and oranges.
  • Cape Town increases saw mostly meats increase in price, with potatoes and onions, and salts, soups, and stocks.
  • Springbok, like, Durban showed a high number of foods in the basket spiking, specifically: flour and sugar; meats, some vegetables: onions, tomatoes, green pepper; and both white and brown bread.
  • Maritzburg prices were subdued, with few increases. Prices that increased were on milk, onions, carrots, green pepper, apples, and oranges.

Food prices are notoriously unpredictable, and certainly different areas experience their own set of variables which push or pull-down prices.

In November 2022, food baskets decreased in Cape Town and Pietermaritzburg. Food baskets increased in Joburg, Durban, and Springbok.

The data (except for Joburg, which increased marginally last month and this month) shows a switch – the areas which saw a decrease last month (Durban, Springbok), in November saw an increase; similarly, Cape Town and Maritzburg increased last month, but both have decreased marginally in November.

The Joburg basket increased by R17,99 (0,4%) month-on-month, and increased by R576,75 (13,3%) year-on-year, to R4909,87 in November 2022.

The Durban basket increased by R155,09 (3,3%) month-on-month, and increased by R524,32 (12,2%) year-on-year, to R4829,55 in November 2022.

The Cape Town basket decreased by R28,24 (-0,6%) month-on-month, and increased by R504,60 (12%) year-on-year, to R4702,34 in November 2022.

The Springbok basket increased by R201,41 (4,0%) month-on-month, and increased by R734,32 (16,2%) year-on-year, to R5269,19 in November 2022.

The Maritzburg basket decreased by R27,10 (-0,6%) month-on-month, and increased by R590,44 (14,4%) year-on-year, to R4676,89 in November 2022.

Statistics South Africa’s latest Consumer Price Index for October 2022[i] shows that Headline inflation was 7,6%, and for the lowest expenditure quintiles 1-3, it is 9,7%, 9,3% and 8,5% respectively. CPI Food inflation was 12,3%. STATS SA’s Producer Price Index for October 2022[ii] shows agriculture was 14,4%.

Women and children

In November 2022, the average cost to feed a child a basic nutritious diet was R838,65. Over the past month, the average cost to feed a child a basic nutritious diet increased by R13,34 or 1,6%. Year-on-year, the average cost to feed a child a basic nutritious diet increased by R93,69 or 12,6%

In November 2022, the Child Support Grant of R480 is 28% below the Food Poverty Line of R663, and 43% below the average cost to feed a child a basic nutritious diet (R838,65).

Workers

The National Minimum Wage is R23,19 an hour and R185,52 for an 8-hour day. In November 2022, with 22-working days, the maximum National Minimum Wage for a General Worker is R4081,44.

The November 2022 cost of a basic nutritional food basket for a family of four persons is R3287,44 (See page 6 of November 2022, Household Affordability Index).

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 58,1% of a worker’s wage (R2371,50/R4081,44). Food is bought after monies for transport and electricity have been paid for or set aside (leaving only R1709,94 – for food and everything else), and so in November 2022, PMBEJD calculates that workers’ families will underspend on food by a minimum of 48% (having R1709,94 left after transport and electricity, and with food costing R3287,44). (See page 8 of November 2022, Household Affordability Index).

Household domestic and personal hygiene products

The November 2022 Household Domestic & Personal Hygiene Index shows an increase of R5,65 (0,6%) month-on-month. Year-on-year the household domestic and personal hygiene products index increased by R156,88 (21,2%) bringing the total average cost of basic household domestic and personal hygiene products to R895,66 in November 2022. (See page 5 of November 2022, Household Affordability Index).

The cost of basic hygiene products is high. These products compete in the household purse with food. These products are essential for good health and hygiene.

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[i] STATSSA (2022). Consumer Price Index October 2022. Statistical release P0141. 23 November 2022. Statistics South Africa. Pretoria. P5, 8. See Link: https://www.statssa.gov.za/publications/P0141/P0141October2022.pdf

[ii] STATSSA (2022). Producer Price Index October 2022. Statistical release P0142.1. 24 November 2022. Statistics South Africa. Pretoria. P11. See Link: https://www.statssa.gov.za/publications/P01421/P01421October2022.pdf

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Pietermaritzburg Economic Justice & Dignity Group
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