MBOMBELA – Most consumers think January is the longest month of the year, not realising that the problem lies with the pressure of overspending during the festive season.

With a slow economic growth of an estimated two per cent in 2015, a weaker rand and a rising interest rate, consumers are feeling the pinch. A consumer survey conducted by Lowvelder has revealed that people are buying essential food only.

“This month it’s about buying important items such as bread, cooking oil and lunch-box food for my two children. Yesterday I had to pay for their school uniforms which cost me an arm and a leg. When schools reopens I must have transport money, school fees and petrol for my car, I don’t know how I’m going to survive,” said Ms Busisiwe Matsebula.

A store packer at a busy supermarket in Riverside Mall said since the beginning of this month people are prioritising essential food. “Unlike in December, people are comparing prices. They are buying their groceries from several supermarkets and the trollies are not that full,” he said.

The price of a five-kilogram White Star super maize meal bag costs R42,99 at SUPERSPAR, while at Checkers it costs R38,99 and the same price at Pick n Pay. A tub of one-kilogram Stork margarine costs R38 at SPAR, R38,79 at Pick n Pay and R39,99 at Checkers.

Essentials such as milk and sugar, which are always on top of the list of consumers, showed that they need to dig deep into their already-empty pockets. “Now I’m caught in choosing whether I should buy some of the things like sugar. Generally brown sugar is cheaper than white. These are things I consider when I do my grocery shopping. For me it is not about the month of January, but rather saving in general.

Don’t spend what you don’t have and don’t max your credit card,” said one shopper who wished to remained anonymous.
While there is a slight difference of perishable and non-perishable goods, the prices of washing detergents also tell a different story. A two kilograms of hand-washing powder costs R36,99 across the three Supermarkets, SPAR, Checkers and Pick n Pay. Sunlight dishwashing liquid 75 millitres is a whopping R26,89 at SPAR, R25,99 at Checkers and R25,99 at Pick n Pay.

The rand crushed to a new record low of R17,92 against the US dollar early on Monday as market turmoil in China and a drop in US stocks deterred risk-taking. The nine per cent slump in the rand was the most since 2008.