Most South African consumers are very concerned about inflation

By our News Team | 2021

Latest Deloitte study finds a mixed bag of optimism and pessimism among South Africans. Grocery prices are particularly worrying.

The priorities of South African consumers are shifting, with more emphasis being placed on well-being, experiences and increased intentions to save more for the future.

This is according to latest State of the Consumer Tracker study released yesterday by international consulting firm Deloitte. It measured consumer sentiment across 23 countries during October this year.

Overall, consumers around the world are valuing time more than ever and want to balance lifestyle experiences with having material possessions.

South Africans, as usual, showed a mixture of optimism and pessimism. Rising prices are a particular concern, with a very significant 86% of people saying they are concerned about price inflation for common goods, nearly 20 points above the global average.

Consumer trends

Photo by Steve Buissinne from Pixabay

Grocery inflation is a particular concern

The largest concern is around groceries, where 78% of South Africans believe prices are higher compared to last month.

People are also concerned about their savings, with 79% of SA respondents mentioning this. Similarly, there has been a rise in the number of consumers who are delaying large purchases. Last year, 51% said they had done so. This year, the figure is 64%.

“Consumers are increasingly confident in the safety of various day-to-day activities, although we’re not seeing a rise in their spending priorities,” said Rodger George, Africa Consumer Industry Leader at Deloitte.

“The data also shows us that consumers are becoming increasingly concerned about rising prices and the context of the new Omicron variant. This puts a grey cloud over South Africans’ pent-up demand, desire to socialise, and to resume traditional spending habits during the Festive Season.”

When it comes to personal household finance, there’s a contrast in how South Africans feel now, versus their future prospects. South Africans are currently the fourth most financially anxious consumers of the markets surveyed, yet three in four respondents said they were optimistic about their long-term financial situation. This is far above the 49% global average for optimism.

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    Dr Kin Kariisa

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    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.