WHY cost of living in South Africa is so HIGH in 2024
Why the cost of living in South Africa is out of hand. Image Credit: SANews

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High cost of living in 2024 a reality in South Africa

The cost of living in South Africa in 2024 is outstripping inflation. Here’s why basic living expenses like transport, electricity and foods are so expensive …

18-04-24 12:44
WHY cost of living in South Africa is so HIGH in 2024
Why the cost of living in South Africa is out of hand. Image Credit: SANews

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

cost of living in South Africa
People living of SASSA grants and minimum wage are only spending half the money they should on food. Image: File

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

cost of living in South Africa
The cost of living in South Africa is getting out of hand, and it’s minimum wage earners and grant recipients that suffer the most. Image: File

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: SASSA: Upcoming grant payments for May 2024 (and beyond)