October 2023 Household Affordability Index and Key Data
Key data from the October 2023 Household Affordability Index
The October 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 October 2023: The average cost of the Household Food Basket is R5 297,58.
- Month-on-month: The average cost of the Household Food Basket increased by R141,81 (2,8%), from R5 155,77 in September 2023 to R5 297,58 in October 2023.
- Year-on-year: The average cost of the Household Food Basket increased by R509,75 (10,6%), from R4 787,83 in October 2022 to R5 297,58 in October 2023.
The following foods increased in price in October 2023.
Foods which increased in price in October 2023, by 5% or more, include: rice (5% - a 10kg bag of rice increased on average by R8,56 to R166,35), potatoes (40% - a 10kg pocket of potatoes increased on average by R41,47 to R145,31), eggs (19% - 60 eggs [2 X 30 egg trays] increased on average by R26,39 to R162,10), curry powder (7%), gizzards (5%), chicken livers (7%), wors (7%), fish (10%), tomatoes (11%), butternut (6%), spinach (5%), apples (6%), oranges (13%), margarine (6%), and apricot jam (5%).
Whilst many foods increased above 5% in October 2023 – the core drivers of the higher-priced food basket are potatoes, eggs, and rice.
Foods which increased in price in October 2023, by 2% or more, include: white sugar (2%), sugar beans (2%), soup (2%), tea (4%), chicken feet (2%), beef liver (3%), beef (2%), green pepper (4%), canned beans (2%), and bananas (4%).
Statistics South Africa’s latest Consumer Price Index.
Statistics South Africa’s latest Consumer Price Index for September 2023[i] shows that Headline inflation was 5,4%, and for the lowest expenditure quintiles 1-3, it is 8,3%, 7,8% and 6,8% respectively. CPI Food inflation was 8,0% (for CPI Food & NAB it was 8,1%, we use the figure excluding non-alcoholic beverages). STATS SA’s Producer Price Index for September 2023[ii] shows agriculture was 7,8%.
Inflation on the food baskets per area tracked.
In October 2023, food baskets increased in all areas.
The Joburg basket increased by R258,20 (4,9%) month-on-month, and increased by R617,21 (12,6%) year-on-year, to R5 509,09 in October 2023.
The Durban basket increased by R170,46 (3,4%) month-on-month, and increased by R503,16 (10,8%) year-on-year, to R5 177,62 in October 2023.
The Cape Town basket increased by R90,25 (1,7%) month-on-month, and increased by R532,09 (11,2%) year-on-year, to R5 262,66 in October 2023.
The Springbok basket increased by R186,57 (3,4%) month-on-month, and increased by R567,83 (11,2%) year-on-year, to R5 635,61 in October 2023.
The Maritzburg basket increased by R6,86 (0,1%) month-on-month, and increased by R245,82 (5,2%) year-on-year, to R4 949,81 in October 2023.
The Mtubatuba basket increased by R144,43 (2,7%) month-on-month, and increased by R1 112,17 (25,5%) year-on-year, to R5 473,87 in October 2023.
(See pages 10-15 for area specific data, in the October 2023, Household Affordability Index).
Workers
The National Minimum Wage is R25,42 an hour and R203.36 for an 8-hour day. In October 2023, with 22-working days, the maximum National Minimum Wage for a General Worker is R4 473,92. 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 R1 118,48 per person – this is below the upper-bound poverty line of R1 558 per person per month.
The October 2023 cost of a basic nutritional food basket for a family of four persons is R3 655,70 (See page 6 of October 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 55,7% of a worker’s wage (R2 490,92/R4 473,92). Food is bought after monies for transport and electricity have been paid for or set aside (leaving only R1 983,00 – for food and everything else), and so in October 2023, PMBEJD calculates that workers’ families will underspend on food by a minimum of 45,8% (having R1 983,00 left after transport and electricity, and with food costing R3 655,70). In this scenario there is no possibility of a worker being able to afford enough nutritious food for her family. If the entire R1 983,00 all went to buy food, then for a family of 4 persons, we are looking at R495,75 per person per month. This is below the food poverty line of R760 (See page 8 of October 2023, Household Affordability Index).
Women and children
In October 2023, the average cost to feed a child a basic nutritious diet was R932,73. Over the past month, the average cost to feed a child a basic nutritious diet increased by R25,30 or 2,8%. Year-on-year, the average cost to feed a child a basic nutritious diet increased by R107,42 or 13% (See page 6 of October 2023, Household Affordability Index).
In October 2023, the Child Support Grant of R510 is 33% below the Food Poverty Line of R760, and 45% below the average cost to feed a child a basic nutritious diet (R932,73).
Household domestic and personal hygiene products
The October 2023 Household Domestic & Personal Hygiene Index shows an increase of R2,21 (0,2%) month-on-month. Year-on-year the household domestic and personal hygiene products index increased by R109,04 (12,3%) bringing the total average cost of basic household domestic and personal hygiene products to R999,05 in October 2023 (See page 5 of October 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 September 2023. Statistical release P0141. 18 October 2023. Statistics South Africa. Pretoria. P4, 7.
See Link: https://www.statssa.gov.za/publications/P0141/P0141September2023.pdf
[ii] STATSSA (2023). Producer Price Index September 2023. Statistical release P0142.1. 26 October 2023. Statistics South Africa. Pretoria. P12.
See Link: https://www.statssa.gov.za/publications/P01421/P01421September2023.pdf