There is a lot going on in South Africa at the moment. The economy is sensitive to local and international forces and consumers are being hit from all sides. Food prices are on the rise due to the drought, the steady fall in the rand and large uncertainty in policy. Even though these are largely out of consumers hands, they have big impacts on the prices of everyday items. For consumers that are already struggling with living expenses and debt costs, this may push them over the edge.
What Is The Expected Inflation Rate?
According to Alan Winde, Economic Opportunities MEC, the increasing oil price and depreciating exchange rate will hinder agricultural sector growth.
Food price inflation is expected to increase until the end of 2019, stabilising at around 5.5%. The largest contributors to food price inflation will be meat, oils, breads and cereals.
The VAT increase has also had an impact on consumers which saw the price of all items increase by 1%.
What Can Consumers Do To Save Money During These Tough Times?
When we find the prices of food increasing, it is very important to control our shopping and spending habits. Here are 8 tips for saving a few bucks when going to the local supermarket:
- Don’t go to the shops too often – avoid temptation
- When you do go grocery shopping, take a list and only buy what you actually need
- Cut down on luxury items
- Choose the house brand to save money
- Buy in bulk where possible
- Make and pack your own luck for work
- Have coffee at the office instead of going out for R30 cappuccino’s every day
- Stop eating out all the time
These are a few tips that could save you lots of money if you take them seriously. There are many ways to save money and when prices start going up, you have to be stricter with yourself.
If you find yourself struggling to balance your living expenses and debts, you should seek some help. If this is the case, speak to a debt counsellor to get expert advice. Debt counsellors can consolidate your monthly payments and help you create an affordable payment plan.