Majority of South Africans at breaking point as living costs surge
More than half of South Africans are at a financial breaking point as the cost of living continues to climb, according to a new survey by Debt Rescue.
More than half of South Africans are at a breaking point due to the rising cost of living.
That is according to Debt Rescue's latest consumer survey.
The advisory group looked into the financial and emotional state of respondents, following this month's fuel and electricity price hikes.
Survey reveals financial strain
Nine out of 10 people surveyed say they are under serious financial strain.
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The group says 52% of those facing severe money pressures do not know how they are going to cope, while 32% are struggling to afford basic necessities.
Debt Rescue's Chief Operating Officer Annaline van der Poel says people are also cutting back on essential goods and services in order to make ends meet.
"Fuel, electricity, and particularly diesel are pushing up the cost of transport, which then feeds directly into the price of food and everyday goods.”
We are already seeing the impact of this. 60% of respondents expect a significant increase in grocery costs in the coming months. And 75% believe fuel increases are directly driving up the cost of goods and services.
Almost half say the impact will affect every single area of their budget. 87% of people say they will be forced to cut back on essential food items and basic necessities just to cope.
Fuel outlook for May
The pressure could intensify further, with fuel prices expected to rise again in May.
Early data points to another increase in both petrol and diesel prices, with economist Dawie Roodt warning that diesel could jump by as much as R7 or R8 per litre, while petrol may rise by between R4 and R6.
This follows steep increases in April, when petrol rose by more than R3 per litre and diesel by over R7, despite a R3 per litre fuel levy reduction by government.
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