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Rising cost of living

by | Feb 2, 2021 | Personal Finance

As the SRD grants come to an end – the costs of food keep rising, and petrol is expected to rise by about 82c/ litre at the beginning of February as well.

The January 2021 Household Affordability Index – which tracked food prices from 44 supermarkets and 30 butcheries between September last year and January this year in JHB, Durban, Cape Town, Pietermaritzberg and Springbok – shows basic food items like sugar beans, rice, flour and bread have seen price hikes of between 31% and 68%.

According to the latest data, a food basket for the average South African costs around R4,051.20.

Economic Justice and Dignity Group programme director Mervyn Abrahams said: “A basket of 43 basic foods has now breached the level of a national minimum wage and we know that 60% of South Africans earn at that level because the national minimum wage would have been R3,321. So, food is much higher.”
Data group Numbeo has released its Cost of Living indices for cities across the globe for 2021, and included the South African cities of Johannesburg, Cape Town, Pretoria and Durban in it.

Summaries from the different cities showed the following:

Johannesburg

  • Family of four estimated monthly costs are R33,630.95 without rent.
  • A single person estimated monthly costs are R9,579.45 without rent.
  • Cost of living index in Johannesburg is 7.81% higher than in Cape Town.
  • Rent in Johannesburg is, on average, 32.83% lower than in Cape Town.
  • Average Monthly Net Salary (After Tax) R21,100.10

 

Pretoria

  • Family of four estimated monthly costs are R32,496.08 without rent.
  • A single person estimated monthly costs are R9,242.74 without rent.
  • Cost of living in Pretoria is 5.87% higher than in Cape Town.
  • Rent in Pretoria is, on average, 46.26% lower than in Cape Town.
  • Average Monthly Net Salary (After Tax) R20,464.00

 

Cape Town

  • Family of four estimated monthly costs are R30,074.05 without rent.
  • A single person estimated monthly costs are R 8,570.81 without rent.
  • Cost of living in Cape Town is 8.00% lower than in Johannesburg.
  • Rent in Cape Town is, on average, 47.25% higher than in Johannesburg.
  • Average Monthly Net Salary (After Tax) R21,123.03

 

Durban

  • Family of four estimated monthly costs are R28,582.15 without rent.
  • A single person estimated monthly costs are R8,280.16 without rent.
  • Cost of living index in Durban is 5.82% lower than in Cape Town.
  • Rent in Durban is, on average, 45.45% lower than in Cape Town.
  • Average Monthly Net Salary (After Tax) R15,960.00

 

For many, it will be difficult to reconcile these numbers above with the abject poverty we know so many South Africans to be living in.

Though Covid 19 and the subsequent lockdowns have had an impact on the finances of the rich and poor – one thing is certain, the world has not stopped turning.

We still need to be able to manage our finances and avoid becoming over-indebted. We still need enough money for our monthly overheads and everyday living expenses. And we still need to pay our debt and protect our credit records.

The cost of living is rising dramatically and everyone is struggling. There is no shame in in that. If you are having difficulty trying to make those proverbial ends meet – contact NDA today for a free assessment. Debt review may or may not be the solution to your financial woes, but it should at the very least be considered as a debt relief option.

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