Increasing petrol prices, consumer product bottlenecks, electricity tariffs and an over reliance on credit, all point toward South Africa being on the cusp of stagflation as unemployment and global inflation exacerbate the struggle of the average consumer.
Consumers have been grappling with consistent petrol price hikes for over a year, and the price to full up a car has reached all-time highs of R21.96 per litre for 95 octane petrol, says Neil Roets, the chief executive officer of Debt Rescue.
“One of the biggest threats lies in the expected escalation in the price of wheat, which is predicted to skyrocket, and this will most likely push up local bread prices – the very staple that the average South African relies on most for their daily meals. How will parents explain to their children that they can no longer pack a sandwich for their school lunch?”
According to the latest Quarterly Employment Statistic published by Statistics South Africa, unemployment has increased to an all-time high of 35.3%. According to Sebastiano Lorio, chief executive of logistics company Cargo Compass South Africa, while electronics, clothing, and essential imported food products are not yet in short supply – they will be later this year.
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