June 2023 Household Affordability Index and Key Data
Key data from the June 2023 Household Affordability Index
The June 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 June 2023: The average cost of the Household Food Basket is R5056,45.
- Month-on-month: The average cost of the Household Food Basket decreased by R15,14 (-0,3%), from R5071,59 in May 2023 to R5056,45 in June 2023.
- Year-on-year: The average cost of the Household Food Basket increased by R367,65 (7,8%), from R4688,81 in June 2022 to R5065,45 in June 2023.
The following foods increased in price.
Foods which increased in price in June 2023, by 5% or more, include: rice (9%), onions (13%), and inyama yangaphakathi [beef tripe] (5%).
Foods which increased in price in June 2023, by 2% or more,include: white sugar (2%), sugar beans (2%), potatoes (3%), fish (2%), tinned pilchards (3%), and canned beans (4%).
The following foods decreased in price.
In June the maize meal price came down by 3%. Some meats came down marginally. Milk, amasi(maas) and eggs came down marginally. All vegetables came down except for onions and potatoes. All fruits came down.
Although the overall Household Food Basket has shown a slight decline in June 2023, the foods which make up the core staples, and which are prioritized first in the purse, remain stubbornly high. This month these foods increased by R34,82 (1,3%), with a year-on-year increase of R237,87 (9,3%), with the total prioritized foods standing at R2798,18 in June 2023. The prices of these foods need to go down before households experience some relief at the till, as they make up the core of the household meals and still cost a lot relative to most low incomes.(See page 3 of June 2023, Household Affordability Index).
Statistics South Africa’s latest Consumer Price Index for May 2023[i] shows that Headline inflation was 6,3%,and for the lowest expenditure quintiles 1-3, it is 9,9%, 9,4% and 8,1% respectively. CPI Food inflation was 12,0% (for CPI Food & NAB it was 11,8%, we use the figure excluding non-alcoholic beverages). STATS SA’s Producer Price Index for April 2023[ii] shows agriculture was 3,7% (May PPI to be released on 29th June 2023).
In June 2023, food baskets decreased in Joburg, Cape Town and Springbok. Food baskets increased in Durban, Pietermaritzburg and Mtubatuba.
The Joburg basket decreased by R31,94 (-0,6%) month-on-month, and increased by R283,78 (6,0%) year-on-year, to R5032,94 in June 2023.
The Durban basket increased by R35,35 (0,7%) month-on-month, and increased by R293,16 (6,1%) year-on-year, to R5075,94 in June 2023.
The Cape Town basket decreased by R40,53 (-0,8%) month-on-month, and increased by R493,62 (11,0%) year-on-year, to R4984,46 in June 2023.
The Springbok basket decreased by R95,17 (-1,7%) month-on-month, and increased by R349,84 (6,9%) year-on-year, to R5396,29 in June 2023.
The Maritzburg basket increased by R4,06 (0,1%) month-on-month, and increased by R343,52 (7,5%) year-on-year, to R4946,04 in June 2023.
The Mtubatuba basket increased by R49,00 (0,9%) month-on-month, and increased by R526,20 (11,1%) year-on-year, to R5286,73 in June 2023.
Workers
The National Minimum Wage is R25,42 an hour and R203.36 for an 8-hour day. In June 2023, with 21-working days, the maximum National Minimum Wage for a General Worker is R4270,56.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 R1067,64 per person – this is below the upper-bound poverty line of R1 417 per person per month.
The June 2023 cost of a basic nutritional food basket for a family of four persons is R3505,56 (See page 6 of June 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 53,8% of a worker’s wage (R2299,50/R4270,56). Food is bought after monies for transport and electricity have been paid for or set aside (leaving only R1971,06 – for food and everything else), and so in June 2023, PMBEJD calculates that workers’ families will underspend on food by a minimum of 43,8% (having R1971,06 left after transport and electricity, and with food costing R3505,56). In this scenario there is no possibility of a worker being able to afford enough nutritious food for her family.
If the entire R1971,06 all went to buy food, then for a family of 4 persons, we are looking at R492,76 per person per month. This is below the food poverty line of R663 (See page 8 of June 2023, Household Affordability Index).
Women and children
In June 2023, the average cost to feed a child a basic nutritious diet was R893,78. Over the past month, the average cost to feed a child a basic nutritious diet decreased by R7,41 or-0,8%. Year-on-year, the average cost to feed a child a basic nutritious diet increased by R80,49 or 9,9% (See page 6 of June 2023, Household Affordability Index).
In June 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 (R893,78).
Household domestic and personal hygiene products
The June 2023 Household Domestic & Personal Hygiene Index shows an increase of R9,62 (1,0%) month-on-month. Year-on-year the household domestic and personal hygiene products index increased by R115,21 (13,7%) bringing the total average cost of basic household domestic and personal hygiene products to R954,96 in June 2023 (See page 5 of June 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] STATSSA (2023).Consumer Price Index May 2023. Statistical release P0141. 21 June 2023. Statistics South Africa. Pretoria. P4, 7.
See Link:https://www.statssa.gov.za/publications/P0141/P0141May2023.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