The annual inflation rate in South Africa accelerated to a 13-year high of 7.8% in July of 2022 (from 7.4% in June), well above the upper limit of the South African Reserve Bank’s target range of 3%–6%. Fuel was the most significant contributor to inflationary pressure for the period, up 56.2% vs. 45.3% in June 2022. The annual core inflation, which excludes food prices, non-alcoholic beverages, fuel and energy, rose to 4.4% in July 2022. That’s the highest since October 2017. With continued inflationary pressure, consumers may further cut spending in the coming months.1
South African consumers were aware of the importance of credit and lending products; 92% of consumers surveyed indicated they believe access to credit and lending products are important to achieve their financial goals. However, consumer appetites for new credit or refinancing of existing credit were limited. A little more than one in three consumers said they’ll apply for new or refinance existing credit in the next year.
Although 96% of consumers believed credit monitoring is important, only 60% monitor
their credit monthly. With 70% of consumers acknowledging at least a quarter of their transactions are conducted online, it’s more pertinent than ever they become more active at monitoring their credit to keep track of obligations and protect themselves against potential fraud.