South Africa's poverty line rises to R2 846: Understanding the cost of living

South Africans now need at least R2 846 per person per month to cover basic food and non-food needs, according to the latest national poverty lines released by Statistics South Africa, reflecting the continued rise in the cost of living.

The figure, which represents the upper-bound poverty line for 2025, is adjusted to May 2025 prices and is up from R2 764 in 2024. In 2006, the same threshold stood at R1 054, showing how sharply the cost of meeting basic needs has increased over time.

Statistics South Africa said regular updates to the poverty lines were necessary as prices change. “Changes in the cost of living require that Statistics South Africa make regular adjustments to the national poverty lines to maintain their integrity and relevance over time,” the agency said.

At the most severe level of deprivation, the food poverty line was set at R855 per person per month. This amount reflects the minimum cost of meeting basic daily energy requirements and is commonly used as a measure of extreme poverty.

“This refers to the amount of money that an individual will need to afford the minimum required daily energy intake,” Statistics South Africa said.

The lower-bound poverty line, which includes food costs and only the most essential non-food spending such as basic clothing and transport, increased to R1 415 per person per month, from R1 364 in 2024.

According to the report, food and non-food components of the poverty lines are adjusted separately using the Consumer Price Index because price changes do not affect all categories of spending in the same way.

“Because food and non-food prices do not always move in tandem, each component of the poverty line is adjusted separately,” the agency said.

Long-term trends show a steady increase in all three poverty thresholds. Since 2006, the food poverty line has risen from R228 to R855 per person per month, while the lower-bound poverty line increased from R461 to R1 415.

Statistics South Africa stressed that the national poverty lines are intended as statistical tools to measure and monitor poverty trends, rather than as policy instruments. “The national poverty lines were not designed to be used for setting the national minimum wage, determining eligibility thresholds, or determining the amount to be paid for social grants,” the report said.

For more stories from The Mercury, click the link THE MERCURY