January 2025 Household Affordability Index Highlights Struggles for Low-Income Consumers
The start of 2025 has brought little relief for South African households as the cost of the household food basket continues to climb, adding to the burdens of low-income consumers already struggling with new year expenses. Key findings from the January 2025 Household Affordability Index, compiled by the Pietermaritzburg Economic Justice and Dignity Group, reveal a sobering reality: nutritious food remains out of reach for many families.
Household Food Basket Costs Rise Again
The average cost of the household food basket in January 2025 was R5 433.70, an increase of R50.32 (0.9%) from December and R108.84 (2.0%) higher than January 2024. This rise comes at a time when low-income families face additional expenses for school supplies, transport, and utility bills.
Women from low-income communities monitor the prices of 44 essential food items across 47 supermarkets and 32 butcheries in areas such as Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba, and Springbok. The data shows that 31 food items experienced price increases, with staples like potatoes (+7%), onions (+5%), and chicken livers (+5%) being among the highest.
Notable Price Increases and Decreases
Among food items in the basket, several saw notable price hikes of over 2%, including:
- Maize meal (+3%)
- Sugar beans (+4%)
- Cooking oil (+2%)
- Salt (+4%)
- Tea (+2%)
- Beef (+3%)
- Spinach (+4%)
On the other hand, a few items became more affordable, such as chicken feet (-3%), beef liver (-4%), tomatoes (-2%), and brown bread (-2%). However, these decreases did little to offset the overall rise in costs.
Regional Disparities in Food Basket Costs
The cost of the food basket varied by region in January:
- Johannesburg: R5 507.38
- Durban: R5 451.07
- Cape Town: R5 368.58
- Springbok: R5 773.13
- Pietermaritzburg: R5 075.45
- Mtubatuba: R5 600.67
Johannesburg and Springbok saw some of the highest costs, while Pietermaritzburg remained the most affordable.
The Burden on Low-Income Families
The National Minimum Wage of R27.58 per hour leaves many South African workers unable to afford the household food basket. A worker earning R4 854.08 per month typically supports a family of four, but this income translates to just R1 213.52 per person—far below the upper-bound poverty line of R1 634.
After accounting for transport and electricity costs, which average R2 802.97, families are left with just R2 051.11 for food and other essentials. This means workers underspend on food by at least 46.4%, leaving many without adequate nutrition.
For children, the situation is equally dire. The average cost to feed a child a basic nutritious diet in January was R976.39—46% more than the R530 Child Support Grant. This gap highlights a severe shortfall in meeting children’s dietary needs.
Rising Costs for Hygiene Products
In addition to food, the cost of basic household domestic and personal hygiene products increased by 1.2% from December and 4% year-on-year, bringing the total average cost to R1 045.64 in January. This added pressure further diminishes the affordability of food and other necessities for low-income households.
With the cost of living continuing to rise, low-income South African families face increasingly difficult choices about how to allocate limited resources. The growing gap between wages and basic needs underscores the urgent need for policy interventions to address food insecurity and ensure access to affordable, nutritious food for all.
Also read: Reserve Bank Cuts Repo Rate but Remains Cautious on Further Reductions in 2025
