Prices Are Skyrocketing
High Inflation On Everyday Items Are Placing Consumers Under Pressure
Inflation has shot up to 5.2%* and some of the biggest drivers of this high rate of inflation are the increasing fuel costs and food prices.
Edible oils (like Canola and sunflower oil) have shot up since early 2021 due to shortages caused by poor oil producing crops worldwide. And oils and fats are in most foods in one form or another. Across the board, there has been a 20% jump in prices compared to a year ago. Sunflower oil, in particular, has gone up 70% in just 12 months.
‘Inflation has shot up to 5.2%* and some of the biggest drivers of this high rate of inflation are the increasing fuel costs and food prices’
Meat is also now more expensive than ever before having gone up 8.5% compared to May 2020 near the start of lockdown. Economists say that these prices will continue to go up as a result of droughts and disease (locally and internationally).
Avoiding meats does not seem to be the solution to increasing food costs as even vegetables are now also 6.6% pricier than a year ago.
It has been said that 60% of inflation acceleration can be linked to food and (non-alcoholic) beverage price increases.
The introduction of additional taxes also has an impact on food and drink prices going up.
Oil at $75/ Barrel
Internationally, we are also seeing Brent crude oil cost more per barrel, a lot more as producers manipulate supply and demand to try make up for some of their losses at the start of lockdown last year. Since SA pays for oil (and therefore petrol) in Dollars a weakening Rand also hurts. Companies who are transporting goods are now pushing up their transport costs on regular food items (and other consumer goods).
‘All this is pushing prices up much faster than expected’
All this is pushing prices up much faster than expected. Inflation rates were last this high in late 2018.
Make a Plan Now
If you have been experiencing stress due to struggling to pay for both your monthly running costs (like food, electricity and transport) and trying to pay off all your debts (like credit cards and loans) then you should think about speaking to a Debt Counsellor to discuss how you can adjust your monthly debt repayments with the help of the courts.
If you are already under debt review why not talk to your Debt Counsellor about your monthly budget and see if they have suggestions for you?
*figures from StatsSA forMay 2021