The cost of living for consumers continues to remain high after it was revealed this past week that the price of a basic grocery food basket had increased by 8.3% in just a year.
This was according to the January 2024 Household Affordability Index and Key Data, compiled by the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD).
The index showed that in January 2024, the average cost of a household food basket was R5 324,86.
Month-on-month, the food basket increased by R86.66 (1.7%), from R5 238.20 in December 2023 to R5 324.86 in January 2024.
Year-on-year, it increased by R407.44 (8,3%), from R4 917.42 in January 2023 to R5 324.86 in January 2024.
The food items that increased the most in price in January were potatoes by 13% and tomatoes by 14%.
Brina Biggs, a senior manager at 1Life, told Business Report that the usual see-saw continued at the start of 2024.
Biggs said, “While we had lower fuel prices in December and January, it has been short-lived with an expected price increase for the next month. The continuous load shedding, coupled with the elevated fuel prices, have contributed to the cost of an average food basket. We can all feel the increase when going to the shops to purchase our groceries. There will probably be no reprieve in the foreseeable future. We urge South Africans to stay the course and not take on any more credit, which is easier said than done.”
Hayley Parry, a money coach and facilitator at 1Life’s Truth About Money, said that this just added to South Africans Janu-worry blues.
Parry further added, “It seems that household food inflation is increasing faster than our average inflation rate. I don’t think that consumers will be surprised to hear that. If consumers are feeling over-indebted, they should get a financial education. If you are tired of the pain and tired of having more month than money, learn how to manage your money better. The Truth About Money has some free online courses that can help consumers better manage their finances as well as how to spend it month by month and even week by week.”
Neil Roets, the CEO of Debt Rescue and a consumer debt expert, voiced grave concerns about the ongoing financial challenges for South African consumers.
“Significant hikes in essentials like meat, eggs, and dairy, impedes access to basic nutrition. There was also major increases in housing, utilities, and hospitality, signalling a deepening cost of living crisis. Although transport costs showed some relief, the forecasted rise in petrol and diesel prices in February 2024 adds to the burden, emphasising the need for comprehensive strategies to mitigate these financial strains.”
BUSINESS REPORT