South Africans most concerned about rising cost of living, political uncertainty - PwC report

JOHANNESBURG - High inflation and political uncertainty are believed to be giving South Africans sleepless nights, as consumers continue to feel the pinch.

Accounting firm PwC has published its latest consumer survey, which details what consumers perceive as the biggest potential threats to the country in the coming 12 months.

PwC said the cost of living was the top economic concern among South African consumers.

During 2022 and 2023, salaries and wages were unable to keep up with consumer price inflation.

The erosion in buying power is set to continue in the second half of 2024.

Stats SA released the June inflation print on Wednesday.

Although it dropped to 5.1% from the previous month, it's still far from the reserve bank’s midpoint target of 4.5%.

On a positive note, salaries and wages are expected to increase by almost 5% in 2025 while inflation is expected to moderate further, both resulting in a marginal increase in buying power.

The PwC reports said that economic uncertainty was the second top concern among consumers.

The firm said that disappointing economic growth had an impact on the labour market as job growth also disappoints.