April 2023 Household Affordability Index and Key Data

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Key data from the April 2023 Household Affordability Index

The April 2023 Household Affordability Index,which tracks food price data from 47 supermarkets and 32 butcheries, ^[i] in Johannesburg (Soweto, Alexandra, Tembisa and Hillbrow), Durban (KwaMashu, Umlazi, Isipingo, Durban CBD, Hammarsdale and Pinetown), Cape Town (Khayelitsha, Gugulethu, Philippi, Langa, Delft and Dunoon), Pietermaritzburg, Mtubatuba (in Northern KwaZulu-Natal), and Springbok (in the Northern Cape), shows that:

• In April 2023:The average cost of the Household Food Basket is R5023,95.
• Month-on-month: The average cost of the Household Food Basket increased by R57,75 (1,2%), from R4966,20 in March 2023 to R5023,95 in April 2023.
• Year-on-year: The average cost of the Household Food Basket increased by R481,02 (10,6%), from R4542,93 in April 2022 to R5023,95 in April 2023 (see Table 1, below).

Table 1: Average cost of the Household Food Basket year-on-year from April 2022 to April 2023.

The following foods increased in price.

Foods which increased in price in April 2023, by5% or more, include: onions (11%), maas (5%), tomatoes (8%), spinach (11%), cabbage (8%), green pepper (16%), canned beans (5%), apricot jam (8%).

Foods which increased in price in April 2023, by2% or more,include: maize meal (3%), rice (2%), cake flour (3%), stock cubes (2%), soup (2%), full cream milk (2%), eggs (3%), chicken feet (2%), gizzards (4%), chicken livers (3%), fish (2%), butternut (2%),cremora(2%), tinned pilchards (2%), and brown bread (2%).

In April 2023, food baskets decreased in Springbok and Mtubatuba. Food baskets increased marginally in Joburg and Durban, whilst increases in Cape Town and Pietermaritzburg were much higher.

The Joburg basket increased by R0,86 (0,0%) month-on-month, and increased by R457,98 (10,0%) year-on-year, to R5021,07 in April 2023.

The Durban basket increased by R9,26 (0,2%) month-on-month, and increased by R297,62 (6,5%) year-on-year, to R4880,67 in April 2023.

The Cape Town basket increased by R162,08 (3,3%) month-on-month, and increased by R659,43 (14,9%) year-on-year, to R5089,85 in April 2023.

The Springbok basket decreased by R92,52 (-1,7%) month-on-month, and increased by R377,50 (7,6%) year-on-year, to R5337,51 in April 2023.

The Maritzburg basket increased by R77,19 (1,6%) month-on-month, and increased by R633,72 (14,6%) year-on-year, to R4969,54 in April 2023.

The Mtubatuba basket decreased by R6,57 (-0,1%) month-on-month, and increased by R516,05 (11,2%) year-on-year, to R5143,81 in April 2023.

Statistics South Africa’s latest Consumer Price Index for March 2023 ^[ii] shows that Headline inflation was 7,1%,and for the lowest expenditure quintiles 1-3, it is 11,3%, 10,7% and 9,2%respectively. CPI Food inflation was 14,4% (for CPI Food & NAB it was 14%, we use the figure excluding non-alcoholic beverages). STATS SA’s Producer Price Index for March 2023 ^[iii]shows agriculture was 5,2%.

Workers

The National Minimum Wage is R25,42 an hour and R203.36 for an 8-hour day. In April 2023, with 17-working days, the maximum National Minimum Wage for a General Worker is R3457,12. Workers work to support their families. Dispersed in a worker’s family of 4 persons, the NMW, is reduced to R864,28 – this is below the upper-bound poverty line of R1 417 per capita per month.

The April 2023 cost of a basic nutritional food basket for a family of four persons is R3499,59 (See page 6 of April 2023, 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 up58,2%of a worker’s wage (R2011,50/R3457,12). Food is bought after monies for transport and electricity have been paid for or set aside (leaving only R1445,62– for food and everything else), and so in April 2023, PMBEJD calculates that workers’ families will underspend on food by a minimum of 58,7% (having R1445,62 left after transport and electricity, and with food costing R3499,59). In this scenario there is no possibility of a worker being able to afford enough nutritious food for her family.

If the entire R1445,62 all went to buy food, then for a family of 4 persons, we are looking at R361,41 per person per month. This is below the food poverty line of R663 (See page 8 of April 2023, Household Affordability Index).

Women and children

In April 2023, the average cost to feed a child a basic nutritious diet was R892,14.Over the past month, the average cost to feed a child a basic nutritious diet increased by R17,43 or 2,0%.Year-on-year, the average cost to feed a child a basic nutritious diet increased by R91,79 or 11,5% (See page 6 of April 2023, Household Affordability Index).

In April 2023, the 2023/4 annual grant increase came into effect. The Child Support Grant was increased by R20, from R480 to R500 per child per month. This is an increase of 4,2%.

In April 2023, the Child Support Grant of R500 is 25%below the Food Poverty Line of R663, and 44% below the average cost to feed a child a basic nutritious diet (R892,14).

Household domestic and personal hygiene products

The April 2023 Household Domestic & Personal Hygiene Index shows an increase of R6,19 (0,7%)month-on-month. Year-on-year the household domestic and personal hygiene products index increased by R142,15 (18,1%)bringing the total average cost of basic household domestic and personal hygiene products to R927,99 in April 2023 (See page 5 of April 2023, 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] In December 2022 we added a new area to the Household Affordability Index: Hammarsdale and Pinetown (part of Durban). This followed a 4 -month pilot study. The addition of Hammarsdale and Pinetown increases the overall number of supermarkets tracked from 44 to 47 and butcheries from 30 to 32. We have replaced the Mtubatuba data (previously part of the Durban Household Food Basket) with the Hammarsdale and Pinetown data and put the Mtubatuba data as a separate data set.

[ii] STATSSA (2023).Consumer Price Index March 2023. Statistical release P0141. 19 April 2023. Statistics South Africa. Pretoria. P4, 7. See Link:https://www.statssa.gov.za/publications/P0141/P0141March2023.pdf

[iii] STATSSA (2023).Producer Price Index March 2023. Statistical release P0142.1. 26 April 2023. Statistics South Africa. Pretoria. P12. See Link:https://www.statssa.gov.za/publications/P01421/P01421March2023.pdf