SA consumers getting poorer

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sonxEr77

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SA consumers getting poorer

Aug 20 2007 09:32 AM
Johannesburg - The average South African family living in a middle-class suburb and still paying off a house and car is now at least R1 650 a month poorer than a year ago.

Another interest rate hike, higher food prices and more expensive petrol have significantly decreased the buying power of a salary earner in the year to August 2007.

In August 2006, banks' lending rates were still 11.5%. From last Thursday, it is 13.5%. Food prices have increased by an average 14% since July last year, while a litre of unleaded 93-octane costs 32c more than in September last year.

The following calculations show how South Africans have become poorer:

In August last year, the monthly repayments on a mortgage of R800 000 was R8 531; it is now R9 658.
The monthly repayments on a car of R200 000 have increased from R4 398 in August last year to R4 601 now.
In September last year, it cost an inland motorist R394 to fill a 60-litre tank with unleaded 93-octane petrol. Today it costs R20 more to fill the same tank with petrol.
A trolley groceries that cost the average shopper R2 000 a year ago, is now R284 more expensive if that shopper buys the same items.

The above calculations exclude the price hikes in school fees, water and electricity and medical costs.

And there is no short-term relief for people with huge debt.

The Reserve Bank's monetary policy committee on Thursday said the inflation rate was expected to only decline by the middle of next year. This means that there would be no interest rate relief before then.

Meanwhile, the price of food - especially meat, dairy and grain products - was expected to become more expensive.

The National Agricultural Marketing Council said consumers would only in the next three months dock up for the last years increase in the prices of grain, mealies and sunflower seeds. Bread, mealie meal and cooking oil are expected to become significantly more expensive.

The NAMC said that a 750ml bottle of cooking oil is already 32% more expensive than in July last year. Fresh meat costs an average 20% more, while dairy products have increased by 20% in the last year
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@Finance24/Economy
 
xrapidx said:
If you work it out over a year... its probably cheaper to get your own cow... and then you don't have to mow the lawn.
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With the price of meat, one might not have the cow for very long.
 
xrapidx said:
If you work it out over a year... its probably cheaper to get your own cow... and then you don't have to mow the lawn.
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No - but you do have to shovel up a whole load of . . . :)

My mother had the bright idea of getting four lambs to keep the grass short in the back of our house - she also made the mistake of naming them and that can only cause problems down the road when its time for them to go to market. :o
 
If you work it out over a year... its probably cheaper to get your own cow... and then you don't have to mow the lawn.
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You obviously have no idea how much poop a single cow generates ... I'd rather mow the lawn and pay for the milk.
 
There is always the possibility of selling the poop off as fertiliser and making some extra cash..
 
bwana said:
she also made the mistake of naming them and that can only cause problems down the road when its time for them to go to market. :o
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Yeh... we had the same problem with chickens of all things...
 
I can confirm this article - it's happening to us at the moment.

It's a real nuisance... and makes one worry about the future...
 
Can someone borrow me some money to help pay my newly increased bond and car, otherwise they gonna be repossessed... :sick:
 
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