Stats SA releases Income and Expenditure Survey (IES) and Updated CPI
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January 29, 2025
TLDR: Risenga Maluleke (Statistician General at Stats SA) discusses with Nosipho Radebe (podcast host).

In a recent episode of the Power 98.7 Podcast, Nosipho Radebe engages with Risenga Maluleke, the Statistician General at Stats SA, to discuss crucial findings from the 2022-2023 Income and Expenditure Survey (IES) and the updated Consumer Price Index (CPI) basket. This blog summarizes their insightful discussion surrounding household consumption patterns, income levels, regional disparities, and the reshaping of the CPI to better reflect modern consumer behavior.
Key Findings from the Income and Expenditure Survey
The 2022-2023 IES unveils significant insights into the financial landscape of South African households:
- Rising Household Income: The total household income in South Africa has reached approximately 4.3 trillion Rand, with an average household income rising from 74,500 Rand in 2006 to 204,000 Rand in 2023.
- Regional Disparities: There are notable variations in average incomes across regions:
- Western Cape: Highest average income at 357,000 Rand.
- Gauteng: Average income around 250,000 Rand.
- Limpopo: Lowest average income at approximately 123,000 Rand.
Breakdown of Income Sources
Income in South Africa is derived from various sources, not just salaries. The survey reveals that:
- 68.8% of total income stems from work-related earnings.
- Other significant contributions include pensions, social insurance, and informal economic activities such as stokvels, particularly common among the Black African community.
Expenditure Insights
On the expenditure side:
- Total Expenditure: Households collectively spent about 3 trillion Rand, with an average annual expenditure of 143,000 Rand.
- Highest Expenditure Regions: Western Cape, followed closely by Gauteng.
- Lowest Expenditure Regions: Limpopo and Northwest provinces, which spend approximately half of what households in the Western Cape do.
Income vs. Expenditure Gaps by Population Group
A stark difference exists in household spending between various demographic groups:
- White Population: Average income of 676,000 Rand and expenditure around 409,000 Rand, allowing for a disposable income of 270,000 Rand.
- Indian Population: Average income 417,000 Rand with expenditures near 285,000 Rand.
- Black African Population: Average income significantly lags, placing them at about 35,000 Rand below the national average, exacerbating economic challenges.
Urban vs. Rural Economic Divide
The discussion highlights a significant urban-rural divide:
- Urban households account for over 81% of total household expenditure, indicating that economic activities are predominantly urban-centric.
- Rural development investments face challenges due to poor infrastructure and service delivery, making urban areas more attractive for economic investment.
Updates on the Consumer Price Index (CPI)
Risenga Maluleke also discusses the updated Consumer Price Index (CPI), which has been reshaped to better reflect prevailing consumer spending patterns:
- Following the 2022-2023 IES, the CPI now aligns more closely with how households actually spend their income.
- Key Categories Included in the CPI Basket:
- Housing and Utilities: Significant expenditures on housing, electricity, and water.
- Food and Non-Alcoholic Beverages: Essential items that constitute a primary expense for households.
- Transport, Insurance, and Financial Services: Emerging as essential spending categories.
- ICT Products: Increased data consumption has influenced spending.
Importance of Updated CPI
The updated CPI not only better captures current spending habits but also facilitates more accurate economic analyses, helping policymakers implement effective strategies to address inflation and support low-income households.
Conclusion
The insights shared by Risenga Maluleke shed light on the evolving economic landscape of South Africa through the lens of household income and expenditure. The findings raise vital questions regarding disparities across different regions and demographic groups, emphasizing the need for targeted interventions to bridge the growing economic divide. The reshaped CPI highlights the importance of accurate expenditure tracking as South Africa navigates its economic challenges in the coming years.
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