According to Neil Roets, CEO of Debt Rescue, South Africans have valiantly attempted to weather the storm of escalating costs over the past five years. However, “their wells have all but run dry,” he said.
Roodt said, “South Africa could be heading for a sharp rise in inflation as fuel prices climb, with diesel prices set to go up even higher in May.”
The Affordability Index further revealed that South African households only buy food as needed, typically referred to as “just-in-time” purchasing.
As per the latest Household Affordability Index, there was an overall increase in costs for most items.
Notably, 30 of the foods surveyed in April experienced price rises, with yellow-fleshed maize meal, frozen chicken portions, and rice seeing significant spikes. In stark contrast, only a few items noted any price decrease, underscoring the widespread nature of this inflationary trend.
Analysis showed that for many low-income households, there continues to be a disconnect between current expenditure and nutritional needs.