Tag Archive for: Cost of Living

Statistics South Africa has published its latest consumer price index, showing that annual consumer price inflation was 3.2% in November 2020, down from 3.3% in October 2020.

The main contributors to the 3,2% annual inflation rate were food and non-alcoholic beverages, housing and utilities, and miscellaneous goods and service, the statistics body said.

“Food and non-alcoholic beverage prices continued to climb, recording an aggregate annual increase of 5.8%, up from 5.4% in October. Food inflation contributed one percentage point to November’s headline rate of 3.2%.”

Some of the largest annual price increases (November 2019 vs November 2020) were recorded for the following goods and services:

  • Fruit (14.5%)
  • Sugar, sweets and desserts (9.3%)
  • Oils and fats (8.3%)
  • Primary and secondary (7.5%)
  • Books, newspapers and stationery (7%)
  • Meat (6.6%)
  • Hot beverages (6.2%)
  • Milk, eggs and cheese (6%)
  • Vegetables (6%)
  • Water and electricity (6%)

Bread and cereals

StatsSA said that cake flour prices have increased by 11.9% over the last year, while brown bread prices rose by 9,2%, and white bread by 7.9%.

As a category, bread and cereals recorded an annual price rise of 4.2% in November.

Bucking the trend of the category as a whole, super maize meal prices have decreased over the last year, declining on average by 7.4%.

Meat and fish

The meat index recorded an annual rise of 6.6%. as beef products in particular have experienced high annual increases.

Beef steak is 16% more expensive than it was a year ago. Beef mince prices have increased by 9.2%, and stewing beef by 8.6%.

Prices in the fish category registered a 4.5% rise over the last year. However, prices dropped slightly (by 0.2%) in November 2020 compared with October 2020, Stats SA said.

Oils and fats

The annual change in prices in the oils and fats category was 8.3%. However, on a monthly basis prices edged slightly lower by 0.2%.

The price of peanut butter has increased by 6.6% over the last year, though a monthly decline of 2% was recorded in November. Cooking oil prices climbed by 9.3% over the last year, and margarine by 7.9%.

Hot beverages

The hot beverages index increased by 6,2% on an annual basis, but on a monthly basis declined slightly by 0.1%.

Black tea is 10.8% more expensive than it was a year ago, but on a monthly basis black tea is cheaper by 0.7%.

Transport goods and services

Prices for products related to transport recorded an average monthly decline of 0,8% and an annual decrease of 1.3% in November, StatsSA said.

All the main transport indices were lower in November 2020 compared with October 2020: vehicle prices declined by 0.3%, public transport by 0.4% and fuel by 2.0%.

Fuel prices are, on aggregate, 10,4% lower than they were a year ago. As an example, the price of inland 95-octane petrol was R16.08 per litre in November 2019, falling to R14,59 in November 2020.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

As more workers switch to remote working during lock-down, a growing number of South Africans are looking to emigrate out of major towns and cities says Chas Everitt International property group.

Everitt said that many more people and companies have had to switch to remote working mode to survive and have realised that:

  • It is much easier than they thought;
  • It does not necessarily mean a drop in productivity; in fact, people are often more productive when working from home;
  • Many types of work lend themselves to working remotely on a permanent basis – and from wherever one prefers to live.

“We are thus not surprised that more employees as well as executives are now seriously exploring the idea of moving away from a big metro to a smaller town or an estate in a more rural area,” said Everitt.

“This pandemic has been a wake up call for many people and families who are now seriously reassessing their priorities, and seeking ways to make permanent changes to achieve a lifestyle that is less rushed and stressed, and we see this reflected in a significant increase in enquiries for country homes.”

In keeping with international trends, however, Everitt said that most do not want to relocate to another province or region, but just to a small town or estate that offers the possibility of a quieter life and is still within a couple of hours’ drive of their origin city – particularly if their friends or family members still live there.

The City of Cape Town is the most expensive metropolitan area in South Africa for rental prices. Many simply cannot afford to live in the city anymore, and are seeking homes elsewhere now that they have the freedom to work from home, alleviating much financial stress.

Everitt said the areas that could be prime targets for this process of “de-urbanisation” in South Africa are:

  • The Cape West coast;
  • The Winelands;
  • The Garden Route;
  • The Little Karoo;
  • The North Coast of KZN;
  • Hartebeespoort;
  • The Vaal;
  • Lanseria;
  • The Waterberg in Limpopo;
  • Towns in Mpumalanga close to Mbombela and the Kruger National Park.

Everitt said that not all towns in these areas will immediately benefit from this trend.

He said those areas that can attract the “de-urbanites” with good municipal management, reliable power and water supplies, reliable and fast internet connectivity, reasonable proximity to an airport, good shopping and medical facilities and good schools if they have children will prosper most.

Looking at the type of properties these new semigrants are likely to buy, he said, there is already high demand among affluent buyers for homes in out-of-town lifestyle estates.

These include Val de Vie, Pearl Valley and Boschenmeer in the Wineleands, for example, as well as the golf estate in Mossel Bay, the estates at the Vaal and around Hartebeespoort and the high-end estates along the KZN North coast such as Zimbali, Simbithi and Mount Edgecombe.

“We expect to see rising demand for ordinary freehold homes and whatever apartments may be available in and around various small towns – and possibly also for smallholdings where young families can keep horses or some livestock, go off-grid and grow their own food if they wish.”

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].