In an era in which landlines are becoming museum pieces and air fryers are the new kitchen status symbol, Stats SA has updated its consumer price index (CPI) baskets and weights to match the new spending habits.
Chief director of price statistics at Stats SA Patrick Kelly released the updated basket and weights on Tuesday reflecting its latest analysis of how SA consumers spend their money.
Each product in the CPI basket has a weight attached to it that determines its importance when calculating the headline inflation rate. A product’s weight represents its contribution to total household expenditure. A larger weight has more impact on the determination of the headline rate.
This important update happens every four to five years to ensure accurate tracking of spending patterns and economic realities.
Comparing household spending in 2019-23 revealed some interesting shifts in budgets.
While housing and utilities remained the biggest expense, it dropped slightly from 24.5% in 2019 to 24.1% in 2023.
Food and drinks became a bigger part of household budgets, increasing from 17.1% to 18.2% in 2023, showing people are spending more on basic necessities.
Transport costs are taking up less of people’s budgets, decreasing from 14.4% to 13.9%, and insurance and financial services have also decreased from 11.4% to 10.4%.
Perhaps the most striking change is in restaurants and accommodation, which has more than doubled from 3.2% in 2019 to 6.1% in 2023.
To better reflect how people eat out, restaurants are now tracked in two categories: full-service restaurants and takeaways. Statisticians also added self-catering accommodation to reflect new travel trends.
Looking at spending by region, Gauteng still leads but its share dropped slightly from 36.3% to 35.9%. The Western Cape and KwaZulu-Natal are gaining economic strength, with their shares increasing to 18.1% and 14.6%, respectively.
The shopping basket itself has changed too. Stats SA now tracks 391 products, down from 396. They have added 71 new items and removed 53. In food and drinks, meat remains the biggest spending category but dropped from 5.4% to 5.1%. Cereals and bread increased from 3.2% to 4.1%.
These updates go beyond merely tracking spending — they provide valuable insights into how SA lifestyles are evolving. From rising expenditures on technology to shifting food preferences, the new data paints a more detailed picture of modern household spending patterns.
New additions to the basket reflect this in items such as basmati rice, butter, garlic, honey and ready-made meals. Items such as cream, condensed milk, coffee beans, post boxes and landlines have been removed as they have become less important in people’s spending.
In alcoholic beverages and tobacco, there has been a notable shift in consumer behaviour. Alcoholic beverages decreased from 6.3% to 4.6%, while tobacco spending fell from nearly 2% to just more than 1%. The basket now includes new items such as Rosé wine, snuff and e-cigarette refills.
Clothing and footwear had a slight uptick, with an important addition being school uniforms to reflect their significance in household spending.
Though housing and utilities showed an overall decrease, some subcategories saw increased allocations due to rising costs in rents, electricity, gas and other fuels. The basket was updated to include gas cylinders and varnish, while items such as chipboard and plaster were taken out.
Furnishings and household maintenance had a decline, dropping from 4.5% to 3.3%. While new appliances such as air fryers and cooler boxes gained importance, traditional items such as wax shoe polish and household batteries were removed from the basket.
The health category saw a 0.4% increase, driven by higher spending on medicines and health products. The basket now includes new services such as anti-anxiety treatments, contact lenses and orthopaedic surgeries. However, public-sector GP and specialist services were removed from tracking.
In the transport sector, a slight decline in vehicle purchases was balanced by increased spending on passenger transport services. New additions to this category include e-hailing and school transport, while postbox rentals and driving licences were removed from tracking.
Information and communication showed growth, jumping from 3.9% to 5.5%. Modern necessities such as streaming services, power banks and external hard drives were added, while outdated technology like TV decoders and landlines were removed.
Recreation, sport and culture saw decreased spending, particularly in package holidays, books and newspapers. While Lego blocks made it into the basket, music CDs, digital cameras and magazines were removed, reflecting changing entertainment preferences.
The updated basket will be implemented in the January CPI release, with all indices rebased to 100 at December 2024.
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