May 2023 Household Affordability Index and Key Data
Key data from the May 2023 Household Affordability Index
The May 2023 Household Affordability Index,which tracks food price data from 47 supermarkets and 32 butcheries, 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 May 2023: The average cost of the Household Food Basket is R5071,59.
- Month-on-month: The average cost of the Household Food Basket increased by R47,64 (0,9%), from R5023,95 in April 2023 to R5071,59 in May 2023.
- Year-on-year: The average cost of the Household Food Basket increased by R461,70 (10,0%), from R4609,89 in May 2022 to R5071,59 in May 2023.
The following foods increased in price.
Foods which increased in price in May 2023, by 5% or more, include: onions (12%), stock cubes (5%), carrots (12%), butternut (14%), and bananas (5%).
Foods which increased in price in May 2023, by 2% or more,include: maize meal (3%), salt (4%), curry powder (3%), soup (3%), tea (3%), full cream milk (3%), eggs (3%), chicken feet (2%), chicken livers (4%), spinach (4%), peanut butter (3%), and polony (2%).
Statistics South Africa’s latestConsumer Price Indexfor April 2023[i] shows that Headline inflation was 6,8%, and for the lowest expenditure quintiles 1-3, it is 11,3%, 10,6% and 9,2% respectively. CPI Food inflation was 14,3% (for CPI Food & NAB it was 13,9%, we use the figure excluding non-alcoholic beverages). STATS SA’s Producer Price Index for April 2023[ii] shows agriculture was 3,7%.
In May 2023, food baskets decreased in Cape Town and Pietermaritzburg. Food baskets increased in Joburg and Durban, Springbok and Mtubatuba.
The Joburg basket increased by R43,80 (0,9%) month-on-month, and increased by R438,36 (9,5%) year-on-year, to R5064,87 in May 2023.
The Durban basket increased by R159,92 (3,3%) month-on-month, and increased by R330,99 (7,0%) year-on-year, to R5040,59 in May 2023.
The Cape Town basket decreased by R64,85 (-1,3%) month-on-month, and increased by R580,48 (13,1%) year-on-year, to R5025,00 in May 2023.
The Springbok basket increased by R153,95 (2,9%) month-on-month, and increased by R564,10 (11,4%) year-on-year, to R5491,46 in May 2023.
The Maritzburg basket decreased by R27,56 (-0,6%) month-on-month, and increased by R478,03 (10,7%) year-on-year, to R4941,98 in May 2023.
The Mtubatuba basket increased by R93,92 (1,8%) month-on-month, and increased by R546,41 (11,6%) year-on-year, to R5237,73in May 2023.
Workers
The National Minimum Wage is R25,42 an hour and R203.36 for an 8-hour day. In May 2023, with 22-working days, the maximum National Minimum Wage for a General Worker is R4473,92. Workers work to support their families. 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 4 people. Dispersed in a worker’s family of 4 persons, the NMW, is reduced to R1118,48 per person – this is below the upper-bound poverty line of R1 417 per person per month.
The May 2023 cost of a basic nutritional food basket for a family of four persons is R3535,64 (See page 6 of May 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 up 53%of a worker’s wage (R2371,50/R4473,92). Food is bought after monies for transport and electricity have been paid for or set aside (leaving only R2102,42– for food and everything else), and so in May 2023, PMBEJD calculates that workers’ families will under spend on food by a minimum of 40,5% (having R2102,42 left after transport and electricity, and with food costing R3535,64). In this scenario there is no possibility of a worker being able to afford enough nutritious food for her family.
If the entire R2102,42 all went to buy food, then for a family of 4 persons, we are looking at R525,60 per person per month. This is below the food poverty line of R663(See page 8 of May 2023, Household Affordability Index).
Women and children
In May 2023, the average cost to feed a child a basic nutritious diet was R901,19.Over the past month, the average cost to feed a child a basic nutritious diet increased by R9,06 or 1,0%.Year-on-year, the average cost to feed a child a basic nutritious diet increased by R97,74 or 12,2% (See page 6 of May 2023, Household Affordability Index).
In May 2023, the Child Support Grant of R500 is 25%below the Food Poverty Line of R663, and 45% below the average cost to feed a child a basic nutritious diet (R901,19).
Household domestic and personal hygiene products
The May 2023 Household Domestic & Personal Hygiene Index shows an increase of R17,35 (1.9%)month-on-month. Year-on-year the household domestic and personal hygiene products index increased by R138,04 (17,1%) bringing the total average cost of basic household domestic and personal hygiene products to R945,34 in May 2023 (See page 5 of May 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.
-----------------
[i] STATSSA (2023).Consumer Price Index April 2023. Statistical release P0141. 24 May 2023. Statistics South Africa. Pretoria. P4, 7. See Link: https://www.statssa.gov.za/publications/P0141/P0141April2023.pdf
[ii] STATSSA (2023).Producer Price Index April 2023. Statistical release P0142.1. 25 May 2023. Statistics South Africa. Pretoria. P12. See Link: https://www.statssa.gov.za/publications/P01421/P01421April2023.pdf