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The TransUnion Consumer Pulse study for Q1 2022 finds that the majority (80%) of consumers say they\u2019re making changes to their purchasing behaviour because of rising inflation.<\/p>\n
The road to recovery for South African household incomes remains bumpy, the consumer credit reporting agency said. During the most recent quarter, a quarter of households surveyed reported an increase in income, while 32% reported a decrease. The
\nmain reasons for reporting a decrease were job loss (29%), salary reduction (20%), and a reduction in work hours (18%).<\/p>\n
“Still, South African consumers remained hopeful; 69% of respondents expected an increase in their income over the next 12 months \u2014 with only 10% having anticipated a decrease,” it said.<\/p>\n
The annual inflation rate in South Africa climbed to 5.9% in March of 2022, from 5.7% in the prior month, and remains close to the top of the South African Reserve Bank\u2019s target range of 3%\u20136%.\u00a0 More than half (57%) of households said they cut back on
\ndiscretionary spending over the past few months, TransUnion said.<\/p>\n
“When it comes to paying current bills and loans, 56% said they\u2019ll be able to pay them in full, a 10%\u00a0 improvement from Q1 2021. For those who said they\u2019ll be unable to pay current bills and loans in full, 41%\u00a0 noted they\u2019ll only pay a partial amount, and 34% planned to use money from their savings to service bills and loan repayments.<\/p>\n
“Many households did not expect increases in spending over the next three months; 53% said they\u2019ll decrease discretionary spending; 43% said they\u2019ll reduce large purchases, such as appliances and vehicles.”<\/p>\n
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