South African consumers’ grocery costs are increasing at three times the rate of inflation, debt management company DebtBusters has said.
“DebtBusters clients are spending more and more money on essentials due to the consistent rising costs of consumer goods and services,” CEO Ian Wason said today.
“The spending patterns of clients on essential needs such as food, petrol and travel expenses in relation to their income have drastically increased.”
Most high-income clients – those earning R20 000 and above – suffered a 14.1% increase in food expenses in the past nine months.
Statistics SA said on Wednesday the Consumer Price Index (CPI) annual inflation rate for all urban areas increased to 6.3% in July.
The CPI measures changes in the price level of consumer goods and services. Wason said the CPI exceeded the prediction of a 5.9% average for 2013, as well as the SA Reserve Bank’s target range of between 3 and 6%.
“Breaching the target range for inflation can be attributed not only to a drastic increase in petrol prices and the weaker rand, but also to broader economic pressures.”
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