“Money isn’t everything, but everything needs money.”
South Africa is currently experiencing extremely high levels of inflation. While we can’t change it, we can become wiser with our money. To learn more about inflation, what it is and what it means for you, visit our The Money Moves with Debt Rescue YouTube channel is here.
With rising inflation, consumers naturally have less purchasing power. With reduced purchasing power, it becomes much more difficult to manage daily expenses. Those who can keep their heads above water without needing outside help will have to install sidewalk flashing lights. Each cent must be turned over ten times before being released. Luxury needs to be cut in half. Impulsive buying habits must be stopped immediately. There is absolutely no room for error in spending right now.
What is inflation and why should you care?
In layman’s terms, inflation is designed to reduce the purchasing power of consumers. This is due to the increase in goods and services of the country’s economy. When inflation is high, we tend to spend less. In theory, this will help reduce the cost of products and goods.
Inflation is controlled by raising the interest rate, but this creates a number of problems for the consumer. Watch our video on interest rates here.
Less purchasing power means we can no longer buy food for the same price as last months. The Household Food Basket calculated by Pietermaritzburg Economic Justice and Dignity (PMBEJD) is currently 4,688.81 Rand as of June 2022. The Household Food Basket has increased by 72.89 Rand (1.7%) in one month.
The main price increase
The domestic grocery basket may have grown by 1.7%, but some staples and favorite foods rose by 5% or more. These are:
- Vegetable oil increased by 13%. 5 liters of vegetable oil now costs 228.94 rand.
- Curry powder has increased by 5% since May.
- Green pepper is now 10% more expensive than last month.
- Apricot jam, cremora and black bread grew by 5%.
Food products with an increase of less than 5%:
- Cabbage rose in price by 3%.
- Margarine is now 4% more expensive than in May.
- Both salt and white bread rose in price by 4%.
- Maize flour, which many low-income families buy, now costs 268.88 rand for a 30-kilogram bag.
- Even chicken feet cost 3% more.
Possible solutions for heavy consumers
Turn your cents into a thousand times. Some households will not be able to do this and will have to adjust their budgets. If you don’t have a budget yet, you need to make one. Do not retreat from him and plan everything to every loaf of bread you buy.
Don’t buy food on credit. Don’t take out a payday loan or a loan that allows you to access your paycheck for a month. This will only lead to serious financial problems.
Many consumers find it difficult to manage the cost of debt and living expenses. WhatsApp one of our consultants to discuss your options material assistance. At 7thousand At a meeting of the Southern African Customs Union, President Cyril Ramaphosa pointed out that something needs to be done about rising costs and perhaps allow different economies to work together to become food secure and self-sufficient. For now, we need to manage as best we can. Do your homework before spending money and make sure you keep your head above water use the help that is available.