JOHANNESBURG, May 10 (ANA) – The steep increase in the cost of living should prompt consumers to review their financial resolutions, a financial advisor said on Tuesday.
Ester Ochse, head at First National Bank (FNB) financial advisory, said in a statement on Tuesday that the sharp increase in the cost of living was likely to have caught many people by surprise.
Ochse said consumers had to deal with back-to-back interest rates increases in the first quarter on this year, which were quickly followed by electricity and fuels price hikes.
To add to the financial pressure, food prices were expected to continue rising for the remainder of this year and further rate hikes have not been ruled out.
“At the moment, there’s no indication that consumers will get financial reprieve any time soon. In fact, most financial indicators point to an even tougher outlook,” Ochse said.
“People need to be realistic about the financial resolutions they can achieve during the course of this year. For instance, if you were looking to buy a new car using a linked interest rate, consider the fact that your installments could go up once or twice before year-end, and adjust your plans accordingly.”
Experts have warned of a bigger price hike in the cost of red meat expected later this year as inflation and the drought take their toll.
Basic food stuffs like milk have increased and bread prices risen 10 percent after a price hike on the wheat import duty as the drought continued.
Ochse said people who had set financial resolutions before the beginning of this year should reassess their financial position and adjust to the current conditions.
“It’s important to remember that reaching financial resolutions requires a lot of discipline. Once you’ve set yourself targets, try to avoid impulsive decisions that could delay the realisation of your resolutions,” Ochse said.
– African News Agency (ANA)
