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Friday, October 25, 2024

Inflation: Food Prices, Insurance Costs Soar

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Last month, the prices of things we buy regularly went up, making it even more challenging to manage our daily expenses.

 

Statistics South Africa announced today that annual consumer inflation increased in February, rising to 5,6% from 5,3% in January and 5,1% in December.

 

Here’s a breakdown of what happened:

 

Overall Increase: On average, prices increased by 5.6% compared to last year. That means if something cost you R100 last year, this year it’s likely to cost you R105.60.

 

What Got More Expensive: Some things that became pricier include housing, insurance, food, and transportation. For example, the cost of medical aid went up by 10.3%, and health insurance, in general, increased by 12.9%. Also, the price of certain food items like instant coffee, black tea, and Rooibos tea went up.

 

Food Prices: Food prices went up by 6.1% in February. However, not everything became more expensive. While eggs, milk and cheese got a lot pricier by almost 31%, some items like bread flour, rusks, and pasta actually became cheaper.

 

Transport Costs: Transportation expenses increased by 5.4%, mainly because of higher vehicle and fuel prices.

 

Rice and Pizza Prices Soared: Rice prices went up by 25%, and a bag of rice now costs about R31.83 compared to R23.54 a year ago. Pizza and pies also became more expensive, going up by 17.5%.

 

Below is a breakdown from Statistics South Africa about some of the prices that increased. Notably, potatoes are 32.8% more expensive than a year ago.

 

 

Overall, while some things got pricier, there were a few items that became cheaper.

 

Financial experts have urged consumers to keep an eye on expenses and budget wisely in these times of rising prices.

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