The cost of groceries is widely expected to be the biggest increase in consumers’ spending over the next six months.
The TransUnion Consumer Pulse survey for Q2 of the year yielded similar news, with 77% of consumers saying one of their three biggest concerns was inflation for everyday goods such as groceries and fuel, 55% saying they were worried about interest rates, and 52% saying they were concerned about jobs.
The food basket Daily Maverick used for this article included regularly bought items such as rice, milk, bread, peanut butter and chicken.Anton Hugo, Africa retail industry leader at PwC, says consumers largely accepted the price increases of the Covid era, but they are showing little tolerance for continued rises, especially as they turn their attention to mounting non-discretionary spending.
The impact of food prices is also motivating South Africans to change their eating habits. Lullu Krugel, PwC Africa’s sustainability leader, says consumers indicated a growing interest in plant-based diets. This could hint at a rising awareness of the environmental burdens posed by traditional meat production, but it could also point to meat and poultry being too expensive for many consumers.
Standard Bank’s credit card division confirms this, saying that despite high interest rates, only a small percentage of credit card users take advantage of interest-free periods. According to the bank’s analysis, only 20% of credit card holders have benefited from its 55-day interest-free period at least once in the 12 months to December 2023, and only 11% have benefited more than once.
WesBank’s data shows the average loan amount on a new vehicle increased 3.5% during June; the average deal duration increased 3.8% to more than 51 months; and the average contract period is also now more than 73 months compared with a year ago. Nicky Weimar, an economist at Nedbank, says he expects the pressure on households to start easing in the second half of the year as inflation drops and rate cuts are expected.
Roets says the decreases are welcome, but they are “a drop in the ocean for motorists and commuters who have already been hit very hard by four consecutive hikes in petrol this year, and who now have to contend with yet another massive hike in electricity prices”.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SABC News Online - 🏆 32. / 51 Read more »