This is why food items feel more expensive than ever
Breakfast with Martin Bester spoke to financial well-being economist Dr Francois Stofberg about the rising food costs and the items you are paying the most for.
South African residents are feeling the pressure of daily life and the apparent increase in the cost of living.
Martin Bester spoke to financial well-being economist Dr Francois Stofberg to set the record straight and discuss South Africa's current cost-of-living crisis.
Bester addressed the pressure he and many South African consumers are feeling in terms of food prices. According to Stofberg, it is true that certain items may seem more expensive currently, like tomatoes and potatoes.
This usually happens when tax increases, which means that certain items will cost more. However, there is more good news than bad news.
The well-known economist said that, in general, people’s grocery baskets look better than before. He added that many food items did not actually increase in price.
"In general, food inflation is actually going down. The good interest rates are also helping, as well as lower petrol prices," he said.
However, Stofberg added that the financial pressure South Africans feel is not entirely an illusion. He said life is expensive in general, which makes it feel like food is more costly.
Stofberg attributes the high living costs to the still relatively high interest rates, South Africa's high unemployment rate, and the lack of wage increases in recent times.
"Luckily for us, the sentiment across the world about South Africa has changed, and our relationship with the rest of the world is looking up," he added.
In terms of softening the tax blow and helping low-income families, South Africa is actually one of the best among developing countries.
"So, positive news. The currency is doing better, there's a bit of a shift, and even the news isn't as negative as it was previously."
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