South African consumers are under tremendous pressure, which was aggravated by the 2018 VAT hike and high fuel prices.
The lack of consumer spending is clearly illustrated by Massmart’s recent results, which revealed that sales growth slowed in all divisions in November and December 2018.
Data from FNB’s retail segment paints an even bleaker picture, showing that 56% of middle-income consumers spend all their monthly salary in five days or less after receiving it.
“For many consumers it’s not only a matter of living from one salary payment to another, the reality is that their monthly salary just doesn’t last for 30 days,” said Raj Makanjee, CEO of FNB Retail.
To see how prices have changed in recent years, and what consumer now have to fork out, we looked at a range of popular products in South Africa from 2009 until today.
There were some products which became cheaper, like the price of fibre-to-the-home services and fixed data, while others have only gone up.
Price changes in South Africa
The graphic below provides an overview of how prices of popular products in South Africa have changed over the past decade.