The cost of living in South Africa in 2024 is getting out of hand. And it is households earning minimum wage, or no wage at all that rely on South African Social Security Agency grants, are the ones struggling the most. A recent Business Tech report highlighted in-depth data from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD).
In it, 28 out of 44 essential items in a typical South African shopping basket saw year-on-year price increases. Moreover, 19 items have increased by double digits year-on-year. Overall, the basket is now 7.7% more expensive than last year, retailing for R3 694.
COST OF LIVING IN SOUTH AFRICA IN 2024
The South African checks supermarket retailer prices each week. Against this, CPI food inflation for February 2024 was rated at 6%. This exceeds 4.8% increases to SASSA grants and civil servant salaries. Factor in the recent 12.72% Eskom price increase for April 2024, plus consecutive fuel prices increases, and the cost of living in South Africa looks like a perfect storm. While middle-class households may be able to absorb these above-inflation increases, the PMBEJD warns minimum-wage earners and SASSA grant recipients will struggle to cope.
Currently, minimum wage is R27.58 an hour and R220.64 for an eight-hour day. In an average working month, that equates to roughly R4 192. Most disadvantaged households have to support as many as three to four people off one salary. At the current rate, that calculates to just R1 048 per person. As the PMBEJD points out, remarkably, this falls below the upper-bound poverty line of R1 558 per person per month.
GO WITHOUT FOOD
As a result, after increases to electricity and transport, the PMBEJD calculates that low-income families will underspend on food by 52.2%. The nutritional basket costs R3 694 but after other expenses they only have R1 765 left to spend. “In this scenario, it is unlikely that someone earning minimum wage will be able to afford enough nutritious food for their family,” concludes the PMBEJD.
NEXT READ: UPDATE: SASSA Older Persons grant for May 2024
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