Debt Rescue says many consumers have little room left in their budgets to absorb further increases.
Debt review group warns of continued pressure on households
Debt Rescue says while the lower diesel prices may ease business costs, consumers should not expect immediate relief in grocery and other household expenses.
This comes after the South African Reserve Bank (SARB) raised the repo rate by 25 basis points last week amid ongoing inflationary pressures.
Debt Rescue’s Annaline van der Poel says many consumers have told them they have little room left in their budgets to absorb further increases.
“Our concern is that South Africans are facing multiple financial pressures at the same time. Higher fuel costs, higher debt repayments, rising living expenses and ongoing pressure on household budgets are all converging making it increasingly difficult for many families to keep up.
“While any single increase may appear relatively modest, the combined impact on a household budget can be significant, particularly for those who are already living month to month.
“For many households, the financial pressure continues to build, and uncertainty about the months ahead remains a significant source of stress.”