The latest Household Affordability Index from the Pietermaritzburg Economic Justice and Dignity Group lays bare the crushing financial strain experienced by Mzansi households. The data, which tracks the cost of 44 basic foods across major cities and towns, highlights a mix of stability, rising costs, and severe affordability challenges.
The average cost of the household food basket in July 2024 stands at R5 252.15, marking a slight decrease of 62 cents from the previous month but a notable increase of R170.21 compared to the same time last year.
This reflects a marginal month-to-month stability against a backdrop of rising annual costs. While some areas have seen reductions in food prices, the overall trend remains concerning as essential living expenses continue to strain household budgets.
The good
- Price drops for some foods: Notably, the prices of tomatoes, carrots, butternut, spinach, and oranges decreased by up to 9%, offering some relief in food costs.
- Stable month-to-month costs: The household food basket cost saw only a minimal decrease of 62 cents from June to July 2024, reflecting a relatively stable month.
- Decrease in some regional baskets: Food baskets in Cape Town, Springbok, and Pietermaritzburg saw decreases in July, providing some regional respite from rising costs.
The bad
- Yearly food basket increase: The average cost of the household food basket rose by R170.21 (3.3%) from July 2023 to July 2024, indicating a significant yearly increase.
- Rising child nutrition costs: The cost to feed a child a basic nutritious diet increased by 4% year-on-year, highlighting growing challenges for families with children.
- High hygiene product costs: The average cost of basic household domestic and personal hygiene products increased by R73.56 (7.6%) year-on-year, straining household budgets further.
- Regional disparities in food costs: Durban’s food basket increased by 3.8% year-on-year, contrasting with the decreasing costs in other regions and adding to regional economic pressures.
The ugly
- Wage vs. cost of living crisis: The Pietermaritzburg Economic Justice and Dignity Group says the national minimum wage of R5 074.72 is insufficient to cover basic nutritional needs, leaving workers facing a severe shortfall when budgeting for food and other essentials.
- Substantial gap in child support: The child support grant is 30% below the food poverty line and 43% below the average cost to feed a child a basic nutritious diet, exposing a critical gap in support for low-income families.
- Overwhelming expense for basic needs: Electricity and transport alone consume 56,8% of a worker’s wage, forcing families to underspend on food by at least 40,3% and potentially compromising their nutritional intake.
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