Sharp rise in household expenditure

Tuesday, November 6, 2012

Pretoria - Expenditure by South African households has increased by 24.6% between the years of 2005/2006 and 2010/2011, the Income and Expenditure Survey (IES) of 2010/2011 has found.

"Average household consumption expenditure in South Africa increased from R56 152 in 2005/2006 to approximately R95 183 in 2010/2011, which translates into a nominal increase of 69.5%. In constant 2011 prices, we see a real increase in spending of 24.6% or roughly R18 779 per annum," said Statistics South Africa in its IES.

According to the survey released on Tuesday, South African households spent the most on housing, water, electricity as well as other utilities. This group represented 32% of total household consumption expenditure.

Transport was the second largest expenditure group at an estimated R214 billion or 17.1% of total household consumption expenditure.

The third largest group was miscellaneous goods and services, representing 14.7%. This included medical aid and insurance.

Food and non-alcoholic beverages accounted for 12.8% of household expenditure. "On average a typical household spent R12 200 on food and non-alcoholic beverages in the survey year."

The average household income was at R119 542 a year. "The average annual household income experienced a real increase of 16.7% (approximately R17 141 per annum) since 2005/2006," read the report.

The survey also found that the average income that was headed by blacks was at R69 632, while households headed by Indians had an average income of R252 742 per annum and that for whites was R387 011 and for coloured households it was R139 190.

In the 2010/11 IES, there was an 18.2% increase in the average income of households headed by men to R151 186, while for women the increase was 13.5% to R70 830.

The survey was conducted between September 2010 and August 2011 among 25 328 households across the country. It was conducted over a combination of diary and recall methods.

The primary objective of the IES is to provide relevant statistical information on household consumption expenditure patterns that will inform the updating of the consumer price index (CPI) basket of goods and services. -