This paper investigates the expenditure patterns of South African households using
detailed cross-sectional expenditure and price data. Linear expenditure system (LES) parameter
estimates are used to calculate income and price elasticities for a number of product categories at
different points of the income distribution. We find substantial variation in the price and income
elasticity of demand of items across the income distribution, with the bottom quartile being
extremely sensitive to increases in the price of food and clothing items, and the top quartile
being as sensitive as households in developed countries.