Cost of living in SA increases drastically
With electricity and petrol going up in April, along with a range of other products, the average South African family will have to fork out roughly R460 more in April to cover their costs.
The average South African family will have to fork out roughly R460 more in April as opposed to March.
Price increases for various products kicked in on Friday, 1 April and while it might not have seemed like too much, Efficient Group economist Francois Stofberg says it's a bitter reality for South Africans.
According to the Efficient Group's calculation, the average South African household consists of two adults and two children younger than 18 years.
The adjusted fuel price, which take effect on Wednesday, is between 86 and 88 cents/ litre more expensive than in March.
That includes the 30 cent/ litre fuel levy announced by Finance Minister Pravin Gordhan during his Budget Speech in February.
The other increases mentioned in Gordhan's speech all kicked in on Friday. They include the new tyre, plastic bag and light bulb levies as well as the cigarette and alcohol (sin) tax adjustments.
Furthermore, Eskom has also been granted a 9,4% electricity tariff hike which translates into just over R130 more every month.
Stofberg explains the monthly consumption of the 'average household':
- Electricity: R 132 pm
- Fuel: R 314 pm
- Tyre Levy: R 7.38 pm
- Plastic Bag Levy: 6c pm
- Light Bulb: R3 pm
- Alcohol: R6.90 pm
Stofberg said however the increases should be looked at in context.
"The household does not simply consume only these goods... the household consumes a multitude of products.
"Therefore it is better to use normal CPI rates to measure the impact it will have on your budget," he explained.
But life for South Africans will be more expensive in general. Food prices are also on the rise due to the recent drought and a hike in the fuel price.
(File photo: Gallo Images)