Global Courant 2023-05-13 10:00:29
With high inflation and a worsening tax burden, South Africans continue to spend a lot of money on groceries and entertainment, such as dining out.
Map data from FNB shows that consumers spend 28% of their income on groceries, up from 27% last year.
Entertainment is also up from 11.5% last year to 12% this year.
Overall, the top 3 spending categories include groceries, transportation, and entertainment.
Lytania Johnson, CEO of FNB Personal Segment, which consists of entry- to middle-income customers, said that “food and transportation generally represent a significant portion of many consumers’ spending, especially those in these income segments.”
“That is why households will always have to review their monthly budgets with every increase in costs in these categories. Unfortunately, food costs are largely influenced by local and global economic factors beyond consumers’ control.”
Senzo Nsibande, the CEO of FNB Card, said it was not surprising to see food and fuel top contributors to the list due to the country’s high inflation.
“Interestingly, in the entertainment category, middle and affluent consumers are spending more on out-of-home experiences such as dining out, going to movie theaters and bookstores, among others,” Nsibande said.
“This may be due to a combination of factors, such as people finding ways to lessen the impact of shedding household activities and an increasing desire to spend time away from home.”
Shake for the consumer
While FNB data shows that South Africans spend slightly more of their income on their groceries, a recent TrendER/infoQuest survey found that about three in four respondents cut down on grocery shopping to reduce food waste as refrigerators become too crowded. be heavily taxed.
67% of respondents also said the types of meals they prepare have changed dramatically as a result of the tax cut.
Echoing Nsibande’s point, 48% of respondents in the TrendER/infoQuest survey said they eat out more because they can’t cook during shedding.
Below are some results from the study:
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