The wave of positive sentiment following Cyril Ramaphosa’s election as president in the first quarter, has faded in the second due to a number of factors including record fuel prices, a tax hike, a local currency firmly on the back foot, and most recently, the return of load shedding.
Consumers are also feeling the very real effects of this downturn – with everything from petrol to the VAT rate seemingly on the increase since the start of the year.
The increasingly high cost of living in the country has also lead to more South Africans taking out debt, with more than half of all consumers three months or more behind in their debt repayments, according to Debt Rescue CEO Neil Roets.
And there appears to be no let up for the second half of the year with further petrol hikes expected to impact consumer inflation amid rising oil prices, while the rand continues to come under pressure against the major basket of currencies.
Unaudited mid-month fuel data released by the Central Energy Fund (CEF) suggest that petrol could rise by as much as 32 cents a litre in July, representing a fourth consecutive month of hikes, and taking the petrol price to a record price exceeding R16 a litre.
BusinessTech looked at five of the most common expenses for South Africans, and how they have increased so far in 2018.