Tax shock rocks consumer confidence
The FNB/BER Consumer Confidence Index plunged from -6 to -20 index points in the first quarter of 2025, likely triggered by the Finance Minister’s aborted proposal to hike VAT by two percentage points.
Even though the Budget softened the VAT hike, it still places a significant tax burden on consumers, which would have weighed on sentiment. The souring of diplomatic relations between South Africa and the US likely also contributed to the drop in sentiment.
“The 14-point plunge in the first quarter is on par with the dramatic drop in consumer confidence when we first entered stage-6 load-shedding in 2023. It signals an alarming deterioration in the outlook for consumer spending following the strong end to 2024,” said the Bureau of Economic Research.
Price increases on staple foods
The Pietermaritzburg Economic Justice & Dignity Group’s March 2025 Household Affordability Index, which tracks the prices of 44 basic foods from 47 supermarkets and 32 butcheries across the country, shows that the average cost of the household food basket increased by R16.14 (0.3%), from R5 313.22 in February to R5 329.36 in March. Over a year to March it increased by R51.43 (1,0%).
“The core staple foods of maize meal, rice, cake flour, white sugar, sugar beans, samp, and cooking oil all saw price increases in March. This is problematic as these items are bought first. The more nutrient-rich foods like eggs, meat, dairy and vegetables, are bought only after the core staple foods have been secured,” the PMEJDG said.
Luno offers early-stage cryptoCrypto platform Luno says it will now provide customers with secure access to crypto assets in the earlier stages of their development.
This move responds to the growing maturity of the crypto industry and evolving consumer demand.
“We believe it is important that investors get safe access to more novel crypto use cases through a leading regulated operator,” said Aleks Andjelopolj, VP Product of Luno. "While we rigorously assess all assets before listing them, we will empower customers to make informed decisions by listing assets sooner and providing educational resources to help them understand the risks and opportunities.” Luno says that while early-stage projects may offer greater potential for returns, they typically carry higher risks and may experience high volatility.
PERSONAL FINANCE