Remember when R100 could stretch so far? We're taking a look at how much it buys today compared to 1996.
South Africa’s story of inflation over the last three decades has been shaped by a mix of global shocks, local pressures and ongoing challenges within a number of sectors
Inflation has climbed by almost 371% since 1996, meaning that money today buys significantly less than it did 29 years ago.
Inflation is influenced by a range of economic forces. Over the years, several global events have added strain to South Africa’s economy and contributed to rising costs for consumers. Two major international crises stand out for their long-lasting impact on prices.
What global events contributed to rising inflation?
The COVID-19 pandemic was the first major shock, disrupting global supply chains and leading to shortages across goods and services. Transport routes slowed or shut down, factories closed, and the ripple effects sent prices climbing worldwide.
Then, the 2022 Russian invasion of Ukraine intensified international pressure on food and fuel costs. With two key exporters affected, global commodity prices surged. This had a cascading effect, increasing costs in essential sectors and placing greater financial strain on South African households already navigating rising expenses.
While these crises led to steep increases, food price inflation in South Africa has recently begun to ease. According to BusinessTech, consumer food price inflation slowed to 3.9% in October 2025, down from 4.4% in previous months. This deceleration was primarily driven by lower price increases in fruit, nuts, vegetables, meat, sugar, confectionery and desserts.
However, challenges remain. Foot-and-mouth disease continues to affect the agricultural sector, placing pressure on farmers and prompting ongoing vaccination efforts.
How is the value of R100 calculated across time?
Statistics South Africa tracks consumer price inflation over extended periods. The consumer price index (CPI) measures how prices change for a basket of goods and services commonly purchased by households. Using CPI data from 1996 and 2025, it's possible to calculate how much R100 from the past would be worth today.
To determine this, R100 is multiplied by the CPI of 2025 and then divided by the CPI of 1996. This calculation shows that R100 in 1996 holds the same buying power as roughly R470.45 in 2025. This reflects an inflation rate of 370.5% over 29 years or an average annual rate of 5.48%.
Although general inflation paints one picture, the cost of essential items often paints a different one. Unfortunately, food prices have outpaced inflation in many categories, further eroding purchasing power for many South Africans.
Certain items have surged far beyond the general rate of inflation. Eggs, for example, have risen by a staggering 952% since 1996. White bread has increased by 787% and milk by 624%. These increases underscore the disproportionate burden placed on households, especially when food often accounts for a large share of monthly expenses.
What did R100 buy in 1996 compared to 2025?
A comparison using data from Statistics South Africa and average prices from four major retailers (Woolworths, Checkers, Pick n Pay and Spar) demonstrates how sharply purchasing power has declined.
In 1996, a basket of selected everyday goods cost R101.91. It was possible to purchase nearly the entire list with just R100. In contrast, the same or similar basket costs an average of R775.88 in 2025. When compared with the inflation-adjusted value of R470.45, it becomes clear that the real buying power of R100 has deteriorated significantly over time.
Take a look at the price comparison below:
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White bread (700g): R2.45 in 1996, R18.99 in 2025
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2-litre milk: R5.21 in 1996, R32.99 in 2025
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Lamb chops (per kg): R21.18 in 1996, R219.99 in 2025
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Chicken fillet (per kg): R10.75 in 1996, R84.99 in 2025
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Apples (per kg): R4.37 in 1996, R32.99 in 2025
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Coca-Cola (2L): R5.04 in 1996, R26.99 in 2025
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Eggs (6-pack): R2.28 in 1996, R23.99 in 2025
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Toothpaste (100ml): R4.38 in 1996, R24.99 in 2025
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Toilet paper (4-pack): R7.14 in 1996, R34.99 in 2025
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2kg white rice: R6.29 in 1996, R42.99 in 2025
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Kellogg’s Cornflakes (500g): R8.44 in 1996, R56.99 in 2025
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Cheese (per kg): R24.38 in 1996, R174.99 in 2025
South Africa's food prices have skyrocketed exponentially since 1995, with South Africans paying 600% more for the same amount of items.
Gone are the days when that blue R100 note could get you enough food to last a whole month. Nowadays, we're thankful if we can get two mangoes for R100. As much as nobody likes living in the past, sometimes we’re reminded of just how much easier and cheaper life was.
In just under 30 years, the average food basket has had an exponential increase in cost of around 600%! Yep - 600%.
According to BusinessTech, a typical middle-income basket in 1995 - with 15 basic food items - would’ve cost you just R82.68. Currently, in November 2024, that same basket will set you back about R644.85. That’s an extra R562 for the same exact things. How is that even possible?
Well, let's compare. Here's a simple 10-item grocery list priced between 1995 and 2024. You might wanna sit down for this, because the difference will blow your mind.
The one thing you’re probably wondering is why everything is so expensive now. Well, there’s a lot that contributes to food inflation - including agricultural costs, transportation costs, supply shortages where there’s high demand, energy costs, and overall global economic instability.
However, the insane rise in food prices has inspired many South Africans to take matters into their own hands by growing basic organic food themselves. Backyard gardens have grown more popular in households everywhere, with NPOs like the Enviro Solutions Centre (ESC) launching seed-sharing initiatives to help struggling South Africans start their own backyard food gardens.
With everything becoming more expensive, South Africans are finding creative ways to adapt and take control of their food security. Whether it’s through backyard gardens, community initiatives, or seeking out budget-friendly alternatives, resilience is key in these tough times.
What about you? How are you managing the rising food costs?
Comments - Media
The big world hre is INFLATION - The South African government destroyed billion of wealth of the hardworking people of South Africa and most of the economist standing all behind them.
