Consumers dig deep in pockets for essentials
The main contributors to the annual inflation increase are food and non-alcoholic beverages, among others, also noting a steep rise by 13.6% year-on-year, according to StatsSA, with milk, eggs and cheese up by 12.3%.
POLOKWANE – After South Africa’s annual inflation rate increased to 7% in February, for the first time since October last year, Limpopo Economic Development MEC Rodgers Monama warns sternly, against the overpricing of products by local businesses.
The main contributors to the annual increase are food and non-alcoholic beverages, among others, also noting a steep rise by 13.6% year-on-year, according to StatsSA, with milk, eggs and cheese up by 12.3%.
Not making it any easier are the increases in the cost of electricity, after the National Energy Regulator of South Africa (Nersa) approved Eskom’s 18.49% price hike, effective from April 1.
For the laymen, this means a loaf of bread costing, R17 increased by R1.19 to R18.19.
Some unregulated shops are known for exacerbating prices of essential products like bread, and these shop must be reported to the Consumer Court situated in 19 Biccard Street.
The court protects vulnerable consumers who have suffered from unfair business practices without monetary charge.
In the spirit of World Consumer Day recognised annually by the United Nations on March 15, Monama led a seminar last Friday, which highlighted the rights of consumers and the role the department plays in this. He pleads with consumers to take note of such occurrences where the recent hike is above 7% of the original price, and bring it to these authorities’ attention.
The effects of inflation, although not immediately felt after each hike, sees consumers pay 50% more on products’ original price, according to Polokwane economist, Baneng Naape. This means people whose income has remained steady for over 10 years, bears the brunt, as they now pay double than what they used to for essential goods such as rice and cooking oil, he explains.
A variety of products and businesses are impacted by the increase and the African Farmers Association of South Africa (Afasa) in Limpopo have voiced their concerns on the devastating effects this will have on small-scale farmers.
“Inflation impedes on small scale farmers commercialising their businesses, especially as they are increasingly becoming unable to afford the expensive machinery, the high fuel and electricity prices, among others. Farmers are going to increase their production prices and will loosely be seen as consumer exploitation if the costs they bear are not well-considered,” says Afasa Limpopo chairperson Tshwarelo Masutha.
Financial advisor, Marothi Letsoalo recommends the following consumers savvy tips, to alleviate financial burden.
1. Buy in bulk
“You would not need to buy as often than when buy daily or weekly. If you buy a box milk, you may not need to buy again until the next month, and you can use that money to buy other essentials. When buying groceries, focus on your needs first so that you have enough to see you though the month. In situations where you cannot buy in bulk, target local markets.”
2. Target specials
“Specials help you save more money especially when you buy grocery once a month. Even so, it depends on what you buy and what you need, so target specials on items that are necessary. Do not be tempted to buy a luxury item just because it is on special.”
3. Month-end shopping
“Buy towards the end of the month between the 29, 30 and 31 because there are more specials on essential food items than during the rest of the month.”
