Here’s what R100 could buy you in 1980 vs today
Inflation has increased by almost 4,000% since 1980, but despite the recent surge in food prices, R100 tends to buy you more than it should in 2024 compared to 44 years ago.
Inflation in South Africa has evolved significantly over the decades, with various global and local factors influencing its trajectory.
In the 1980s, the country experienced a period of high inflation, with the consumer price inflation (CPI) reaching a record 19.7% in September 1986.
The early 1980s saw year-on-year inflation of 13.4% by April 1980, a stark contrast to inflation levels seen today.
Additionally, global events have had a profound impact on inflation.
The COVID-19 pandemic disrupted supply chains worldwide, leading to shortages and increased prices for goods and services.
The Russian invasion of Ukraine in 2022 further exacerbated the situation, especially affecting global food and fuel prices.
Both these crises caused sharp rises in inflation across various sectors, including essential commodities like food, contributing to the hardship faced by South African consumers.
By July 2024, inflation had eased slightly compared to the previous year’s peaks.
According to Stats SA, the CPI for July 2024 remained relatively stable.
Consumer prices rose 4.6% in July from a year earlier, compared with 5.1% in June, Statistics South Africa said in a statement on its website on Wednesday.
That’s the lowest level since July 2021 and was below the 4.8% median of 16 economists’ estimates in a Bloomberg survey.
Annabel Bishop, chief economist at Investec, has provided some forecasts for the rest of 2024.
She believes that while inflationary pressures may continue to ease in the second half of the year, food prices are likely to remain volatile.
Factors such as global oil prices, the lingering effects of the war in Ukraine, and erratic weather patterns may still impact agricultural output and pricing.
Bishop expects inflation to stay within the South African Reserve Bank’s target range of 3% to 6% but warns that the high cost of food will persist as a major challenge for South Africans throughout the remainder of 2024.
What R100 is worth
Statistics South Africa has recorded consumer price inflation over an extended period of years.
Its updated historical CPI headline index showed that the 1980s was a period of climbing inflation that reached a record high of 19.7% in September 1986.
It further revealed that the year-on-year inflation rate for April of 1980 was 13.4%.
CPI headline indexes can be used to calculate the equivalent buying power of R100 between 1980 and 2024.
The consumer price index (CPI) is a metric that reflects changes in the rate of inflation and measures changes in price for a range of consumer products, said Stats SA.
Stats SA’s data shows that in the first quarter of 1980, the CPI headline index was set at 3.2. By comparison, it is at 126.4 in 2024.
To calculate today’s value of R100 after inflation, one must multiply R100 by the CPI of 2024 divided by the CPI of 1980. This calculation shows that R100 in 1980 would be roughly equivalent to R3,950 in 2024.
This represents an inflation figure of 3,850% over the past 44 years.
Prices of goods 1980 vs 2024
The latest Household Affordability Index by the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD) shows that the prices of 28 out of 44 core food items increased in price between August 2023 and August 2024.
Foods in the basket which increased in price in August 2024 by 2% or more, include potatoes (7%), green pepper (12%), apples (7%), salt (2%), Maas (2%), butternut (4%), canned beans (2%), peanut butter (2%), and apricot jam (4%).
Foods in the basket which decreased in price in August 2024 by 2% or more, include onions (-5%), carrots (-8%), spinach (-6%), rice (-2%), white sugar (-3%), samp (-2%), cooking oil (-2%), stock cubes (-2%), chicken gizzards (-2%), beef liver (-2%), beef (-2%), tomatoes (-3%), and polony (-3%).
Stats SA noted that “meat is the most heavily weighed food group in the inflation basket, accounting for just over a third of household food spending”.
The price index for meat recorded a monthly decline of 0.4% and an annual rise of 1.0%, said Stats SA.
According to the Bureau for Food and Agricultural Policy (BFAP), its data also reflects this, with the caveat that the local meat market is also experiencing some pricing pressure due to exports.
The below table shows how the price of certain goods in 1980, as provided by StatsSA and the National Debt advisors, compares to the same or similar products today.
For comparison purposes, prices from four of the country’s major retailers (Woolworths, Checkers, Pick n Pay and Spar) were considered to reach an average cost figure.
Interestingly, only one item (Sta-soft) increased above inflation over the period.
| Item | The average cost in 1980 | The average cost in 2024 | % change |
|---|---|---|---|
| 2-litre milk | R1.72 | R36.74 | 2,036% |
| Lamb chops | R6.69/kg | R209.74/kg | 3,035% |
| Toothpaste (100ml) | R1.09 | R21.99 | 1,917% |
| Pasta (500g) | R0.99 | R18.99 | 1,818% |
| 2kg white rice | R1.19 | R42.72 | 3,490% |
| Simba chips (large,120g) | R0.99 | R20.65 | 1,986% |
| Sta-soft (1L) | R1.99 | R88.24 | 4,334% |
| Kellogg’s cornflakes (500g) | R1.49 | R54.99 | 3,591% |
| 250g mushrooms | R1.19 | R33.99 | 2,756% |
| Cheese | R5.99/kg | R179.35/kg | 2,894% |
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