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How To Save Money During Inflation In South Africa 2023

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A women at the grocery store, price check
Grocery Shopping

Do you remember a time when we were all in primary or secondary school? And our teachers told us about a time when the cost of living will increase and that an R100 will lose its value. Yes unbelievable right, well today is that time. Gone are the days when you would do grocery shopping with just R500.

Inflation in South Africa has us in a corner. Research shows that over the observation period from 1960 to 2021, the average inflation rate was 7.9% per annum. Overall, the price increase was 9,706.38%. An item that was R100 in 1960 will be R9,806.38 in early 2022. The yearly expansion rate in March 2023 was 7.3%.

The main contributors to the Inflation increase are food, non-alcoholic beverages and transport. This is a huge increment since the 14.7% increase in March 2009 (14 years ago).

  • Milk

  • Eggs

  • Cheese

  • Sugar

  • Desserts

  • Fruits

  • Vegetables

Other food products are subject to increased inflationary pressure. The dairy, egg and cheese commodity group posted a year-on-year gain of 13.6% from a recent low of 3.7% in April 2022. The March figures were the biggest annual gain since the figures. February 2009 was 13.9%.

Food and non-alcoholic beverages increased by 13.6% year-on-year and contributed 2.3% to the total Consumer Price Index(CPI) growth of 7% for the whole year. A 9.9% increase in transportation costs for the year pushed this figure to 1.4%.

Estimated Monthly Cost Of Living In South Africa 2023

a woman at the supermarket
Looking for discounts?

While budgeting is a key factor to financial success, knowing the cost of living in South Africa or the particular country you stay in is important. This will give you a few steps ahead in your financial planning and goal setting. A family of four has an estimated monthly cost of $1,823.1 (R32,900.3) excluding rent. The estimated monthly cost per person (a single person) is $532.5 (R9,6059.5) excluding rent.

If you are earning below R9 000 and you are also paying rent then consider yourself broke. Unfortunately, the reality of most South Africans is that they do not meet the minimum threshold for survival. Most people and families are living below the breadline. The cost of living in South Africa is constantly rising while our economy is decreasing.

There are no job opportunities. This is a sad yet awakening reality. As an educated young person. The mandate is then left to the youth of South Africa. We need to find new creative ways to make a living in South Africa. Thanks to technology and the newly found digital remote industries such as:

  • Online Content Creators

  • Brand Ambassadors or Influencers

  • Online writers

  • Cyber Security

  • IT specialist

  • Digital Marketing

These have played a major role in elevating the social and economic strains that challenge most young professionals in South Africa. I believe that it is up to us as the youth to come forward with future-focused ideas that would bridge the gaps in our economy.

What Is The Average Cost Of Rent In South Africa?

Property has always been the best business to invest in worldwide. Cash flow from real estate is also much more stable and predictable than most businesses. This gives you the ability to enjoy profit gained through property ownership.

In general, property values ​​increase over time, meaning the longer you own the property, the more valuable it will become, making it the perfect nest.

The average monthly rents for residential property increased in all provinces of South Africa in 2021 except for Free State and Gauteng. In the last quarter of the year, the national average rent was around 7,900 South African Rands. This means that renting is very expensive in South Africa and will continue to rise over the years.

The Rising Food Cost In South Africa 2023

Maslow's hierarchy of needs is a theory of motivation which states that five categories of human needs dictate an individual's behaviour. Those needs are physiological, safety needs, love and belonging needs, esteem needs, and self-actualization needs. Food comes right at the very beginning. It is a crucial and essential part of human nature.

Data collected by the Dignity and Economic Justice group in Pietermaritzburg helps create a long-term picture of how food prices are changing.

The most recent edition of the group's Household Affordability Index, released on Wednesday, showed that from March 2019 to March 2023, the average cost of a household food basket increased by 60%, from R3,108.77 to R4,966.20. Meanwhile, household income has remained the same and is under a lot of pressure.

Food prices have drastically increased:

  • A 10 kg package of frozen chicken increased by 22% (from R 325.49 to R 397.24)

  • A bag of 10 kg of rice increased by 64% (from R 79.49 to R 130. 4 2)

  • Five liters of cooking oil increased by more than 120% (from R79.16 to R174.68)

  • 10 kg of onions increased by more than 146% (from R48.95 to R120.74)

What is the average Cost of Transportation In South Africa?

South Africa recently had a massive outburst of fuel price increments. The whole country was unhappy. Literally, half of our salaries went towards petrol. This inevitably had a direct impact on the public transport services.

A few years back South Africans used to go to town with only R10 and today it costs R25 and more. Among public transport, taxis appear to be the most expensive public transport for workers, with an average monthly commuting cost of R960, followed by buses (R745) and trains (R581). 29.8% of South African workers leave home for work between 07:00 am and 19;59 pm.

What is the Cost of Mobile Phone SIM and Internet Data In South Africa?

Small things such as data and airtime have become major expenses due to the increased use of social media and our online presence. It is proven it is cheaper to have WIFI over buying monthly data and airtime. Always look for the best options when it comes to data.

How Much Does it Cost to Live in South Africa?

South Africa is a diverse country filled with so much beauty. It is difficult to enjoy the pleasures of nature when the cost of living is high. Since last year there has been a roar on social media regarding this matter. Citizens are complaining about the cost of living. These are some examples of the daily challenges South Africans face. The electricity price fluctuates up and down. Not forgetting that hundreds of South Africans deal with Load Shedding daily. The petrol prices keep jumping. There is a lot of imbalance. Financially South Africans are unhappy.

What is the Cost of Living in Cape Town, South Africa?

Cape Town is undeniably the most expensive place to live in South Africa. The cost of living in Cape Town is naturally two times the average cost of living in any other city in South Africa due to the tourist attraction sites and Table Mountain.

This means a good salary to live in Cape Town would range from an entry-level salary of R31,000 per month while a senior role salary would be more than R420,000 per month. Cape Town is almost 15% more expensive to rent. This principle also applies to the purchase of a property. In general, you'll pay less for homes for sale in Pretoria or Johannesburg than in Cape Town. Maybe it's because so many people want to move to Cape Town.

How To Save and Budget during Inflation In South Africa

Inflation occurs when the demand for a product or service increases or the supply decreases.

This is also called demand-pull inflation.

It's normal for prices to rise slightly each year, but recent global events have put more pressure on supply constraints and pushed inflation to a 40-year high.

With prices skyrocketing, there are a few things consumers can do to understand how to fight inflation. With a little planning, you can make your money last longer and counteract the effects of inflation.

1. Check the interest rate

2. Consider opening a high-yield savings account

3. Consider an overnight savings account

4. Keep investing your long-term savings

5. Explore the bond market

Noba Kunzima! Chat and Pay Has Your Back

To sum it up, we are all trying our best to make the most of our time and resources. Inflation in South Africa has us all in a stronghold. I must say "Kuzima". The cost of living has been analyzed. The average cost of rent and food has been broken down. We now understand that the rising cost of food is affecting all of us. The role transport and petrol prices play in inflation has also been highlighted. Including data struggle. The most expensive place to live in South Africa has been given. Switch and save with Chat and Pay. Visit our website at Chat and Pay and join our waitlist.



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