By: Natasha Archary
South Africans are cutting back on healthcare and education in order to make it through to the end of the month, due to the high cost of living.
Rodger George, Director: Consumer Industry Leader at Deloitte Africa joins Gugulethu Mfuphi on Kaya Biz to share insight into what South Africans are scaling back on.
Across all income groups, healthcare and education incurs a smaller share of the average South African’s wallet, with many already cutting back on everyday items.
In the latest Consumer Signals Report by Deloitte, Rodger says consumers high inflation continues to put pressure on the average consumer.
“Economic headwinds and high inflation persist, resulting in a constrained spending environment where consumers continue to focus on tightening household budgets.
More than half of consumers are concerned about the economy and also savings from the disposable wallet is at an all time low, highlighting that people are really cash-strapped.
Consumers have indicated that they anticipate spending more on groceries and housing in the upcoming 4-weeks.
Across all income groups, it is evident that a significant portion of expenses goes towards essential items.
These items take up a considerable chunk of their budgets, leaving relatively little room for other expenses.
Strikingly, healthcare and education, whih are both crucial to a person’s wellbeing and future success, incur a smaller share of the wallet.”
Rodger George, Director: Consumer Industry Leader at Deloitte Africa
Many South Africans continue to resort to cost-saving measures due to the high cost of living.
The trend of frugal behaviour from consumers continues, with consumers focussing on buying essential groceries, reducing food waste and cooking more meals at home in order to save costs.
Consumers are also indicating a willingness to continue to fill their baskets with house brands and popular name brands when doing their shopping.
Listen to the conversation on Kaya Biz:
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