The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) has reported that the average cost of the monthly Household Food Basket in South Africa has risen to R5,512.53. This amount is almost R200 more than the maximum National Minimum Wage a general worker will take home for the month of October. The increase highlights the ongoing cost-of-living crisis in the country, which is expected to impact households during the festive season.
According to PMBEJD Programme Coordinator Mervyn Abrahams, the month-on-month increase for the October basket is approximately R24, from R5,488.06 in September to R5,512.53 in October. Year-on-year, the average cost of the Household Food Basket increased by R71.94. The Household Food Basket tracks the prices of 44 basic foods from 52 supermarkets and 36 butcheries in cities across the country.
The cost-of-living crisis in South Africa is affecting all income brackets, but lower-income households are being hit the hardest. Research has shown that no group is immune to the rising prices, but those with lower incomes are struggling to make ends meet. Abrahams explained that the cost of food combined with other essentials such as transport and electricity costs leave people with a significant deficit.
The minimum wage in South Africa is set at R30.23 per hour, which translates to R241.84 for an 8-hour day, and R5,078.64 for an average 21-day working month. For the month of October, with 22 working days, the total is R5,320.48. However, Abrahams pointed out that lower-income workers do not have enough money to sustain themselves or their families.
For Black South African workers, one wage typically supports 4.1 people. When the maximum wage of R5,320.48 is disbursed in a family of four persons, each person receives R1,330.12. According to PMBEJD's calculations, this amount is below the National Upper-Bound Poverty Line of R2,962 per capita per month and the National Lower-Bound Poverty Line of R1,457 per capita per month.
The data also shows that electricity and transport costs account for more than 50% of a worker's wage in October, leaving minimum wage workers with under R2,000 for groceries. This amount is nearly R2,000 short of the money needed to buy a nutritional food basket for a family of four. The situation is further complicated by reports of South Africans getting into debt to meet their monthly expenses and historic fuel price increases.
In response to the crisis, Treasury has reduced the fuel levy to cushion consumers. However, it remains to be seen whether this relief will be enough to offset further fuel price increases as the war in the Middle East continues. The ongoing cost-of-living crisis is expected to have a significant impact on households in South Africa, particularly during the festive season.
Key points
- The average cost of the monthly Household Food Basket in South Africa has risen to R5,512.53.
- Lower-income households are being hit the hardest by the cost-of-living crisis.
- Minimum wage workers are struggling to make ends meet due to high costs of food, transport, and electricity.
