Concerned about the rising food prices, electricity bills and several other price hikes that point towards harsher times, economists have urged south Africans to cut down on their budgets and go on spending diets especially while celebrating the Easter season.
Looking at how consumer prices increased by 1.4 percent between January and February this year, economists who believes harsher times are still on the way said citizens should learn to start planning ahead and preparing a viable budgets that will suite the changing lifestyle necessary to keep them out of debt.
The latest Consumer Price Index figures have already been felt by consumers and the economist along side several analysts have postulated harsher times in the coming months.
A Financial journalist and author Maya Fischer-French said higher inflation cannot be avoided and every South African individual ought to understand where each of their money is going and also start to stretch that budget.
“I’ve gone on a spending diet. I’ve decided that I’m not going to make no impulsive purchases for the next three months,” he said.
Agri-SA economist Thabi Nkosi has also warned citizens not to look out for a quick fall of food price as there’s more evidence that food prices are rising quickly after the drought through the summer.
Food prices jumped by 8.6 percent year on year. He said it’s going to be a long time before food prices stop rising so quickly.
“A number of factors need to be put in place for us to see some relief on the food price front. We have been hearing a lot of climatologist have talking about another season of very bad weather, so we are not very hopeful about them coming down in the near future.” Nkosi added.
South Africans have also been encouraged to renegotiate their insurance premiums, anticipate interest rate hikes and start paying more towards their bonds and cut back on luxuries.
South Africans should also brace up for much tougher times as the rand continues to remain at weaker levels which would on the other hand cause increase in fuel pump prices.
Economists are warning that if the rand remains at the current levels, consumers will have to pay more for fuel. To them, this increase could push up transport costs and food prices, leading to basic food items such maize meal becoming less affordable.