The increasing cost of living and essential items has made it necessary for all South Africans to reassess their preferred shopping destinations and separate between needs and wants. Furthermore, the increasing price of food has made it crucial for consumers to make their money go as far as possible. Shopping now requires a careful examination of how every rand is spent. With R500 in your pocket, can you afford the most basic food items at our local supermarkets?
In July 2023, The Outlier conducted a comparison of grocery baskets. The stores included in the data were Food Lovers, Woolworths, Boxer, Makro, Spar, Pick n Pay, and Shoprite. The comparison focused on basic items such as bread, sunflower oil, white sugar, rice, and a bar of soap to mention a few. The data made it clear that the average grocery basket with necessities for one cost an average of R483.20, with some being more than R500. The table below shows various stores and the prices of their grocery baskets.
Lets take a look at The Outlier’s July Grocery Basket Comparison Chart
Source Image: The Outlier
As per the research, Woolworths came out as the most expensive retailer for the specified basket of goods whereas Makro was by far the cheapest.
What Are The Drivers Behind Price Fluctuations?
According to Stats SA Fuel prices were primarily responsible for the increase. In July 2021, the cost of 95-octane petrol inland was R17.39 per litre, and it increased significantly to a new record high of R26.74 per litre in July 2022. The impact of these rising fuel prices was so significant that if they had remained stable, South Africa’s inflation rate in July 2022 would have been 5.5 percent instead of 7.8 percent. Load shedding has also had a significant impact on many stores, forcing them to rely on generators that consume a large amount of diesel fuel.
It’s important to note that the comparison in The Outlier data was based on normal items at normal prices, excluding offers and discounts available through loyalty cards at some stores.
Let’s See How An Average Food Basket Became More Expensive In 2023
In another study, Stats SA looked at how basic consumer items prices had changed over the past year. As per the chart below, the prices of these consumer items significantly increased during the period of 2022-2023. This increase was a result of the rise in fuel prices, which further contributed to the climb in costs. Stats SA also noted that the price increase varied across different provinces, with the Western Cape having to bear the brunt of the high cost of food products. For consumers, onions, potatoes and cauliflower showed an increase of over 25% in just one year.
Source Image: StatsSA
How Should Something Like Inflation Affect Your Financial Behavior?
As a consumer, it is important to note that the cost of living may not improve in the near future. Therefore, it is essential for every South African to conduct their own research and “shop around” when it comes to grocery shopping. It is important to spend wisely and prioritise your expenditure, especially if you have dependents. Remember, having a family may double your expenses compared to an average consumer.
If you are facing difficulties in managing your finances or dealing with debt, you can reach out to Vantage Debt Management for assistance. We provide you with a free financial assessment and can offer advice on how to improve your credit score, manage debt repayments and work towards achieving financial freedom.