#Budget2025: Navigating everyday living amid rising VAT and food prices

Photo by Marjan Blan on Unsplash

Coupled with rising food, electricity, and fuel prices, this has raised significant concerns about how these factors will affect their budgets and daily living expenses.

In the last five years, food prices have risen sharply, exacerbating a national malnutrition crisis.

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The Pietermaritzburg Economic Justice and Dignity (PMBEJD) Group reports that the average cost of a household food basket reached R5,383.38 in December 2024, up from R3,199.86 in December 2019 — an alarming increase of over 68%, far exceeding the general inflation rate of around 26%.

This steep rise in daily costs, combined with stagnant wages, creates immense challenges for South African families. Essential nutrition is often compromised, with staple foods seeing prices soar nearly 60% from R1,303.18 in December 2019 to R2,078.68 in December 2024, significantly impacting low-income households.

To cushion vulnerable communities from the impact of these tax measures, the list of VAT zero-rated food items will expand effective 1 May 2025. New additions include edible offal and specific cuts of meat, dairy liquid blends; and tinned or canned vegetables. This initiative aims to alleviate some financial burdens for those in need.

Despite the challenges posed by rising costs, consumers can keep grocery shopping stress-free with strategic planning and budgeting.

Here are some practical tips to navigating everyday living:

1. Plan and prioritise: Create a detailed shopping list focusing on essential, nutrient-dense items to avoid impulse purchases, and planning weekly meals helps you buy only what you need and can allow you to capitalise on retailer specials and group buying.

3. Consult the VAT Zero-Rate List: Keep the list of zero-rated items handy, as many staples like maize meal, milk, eggs, brown bread, lentils, and cooking oil are included. With more protein items being added, this list is invaluable when making shopping decisions.

4. Utilise group-buying platforms: Platforms like SOLshop allow you to join forces with others to purchase items at wholesale prices. This social-shopping method is perfect for bulk buying, especially essential household groceries.

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Buying in bulk, especially staples, ensures you can feed your entire family while keeping costs down. The platform offers weekly deals on daily essentials that will help your rands stretch further.

5. Explore alternative shopping options: Smaller local retailers, markets, and street vendors can sometimes offer better deals than major retailers.

6. Focus on nutrient-dense foods: Prioritise purchasing foods that provide the most nutrition for their cost, such as legumes, grains, vegetables, and fruits that are less expensive but still healthy.

7. Homemade options: Preparing items such as Umphokoqo (crumbly pap), uJeqe (steamed bread), muffins, and scones at home can be healthier and more economical than buying convenience foods.

8. Buy seasonal produce: Focus on purchasing fruits and vegetables that are in season, as they tend to be more affordable and fresher.

9. Grocery store loyalty cards: Many retailers now have loyalty cards that offer shoppers discounts. Make sure you sign up to receive the benefits

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10 Manage finances with digital wallets: Use a digital wallet like SOLmate to track your grocery and household spending. It offers real-time balance updates and transaction tracking, helping you adhere to your budget effortlessly. It’s an ideal way to manage funds and takes the anxiety out of every day financial management.

As we navigate an environment of higher inflation and VAT, the key to reducing grocery shopping anxiety lies in careful planning, budget adherence, and exploring cost-saving strategies. With clever budgeting, you can still maintain a healthy diet while saving for unexpected expenses or that treat.