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What R100 Could Buy You in 1995 vs 2025: The True Cost of Inflation in South Africa

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R100 in 1995 had the buying power to comfortably fill a small grocery basket, but in 2025, the same R100 barely makes a dent. With inflation increasing by a staggering 414% over the past 30 years, South African consumers are feeling the strain of skyrocketing prices on their wallets.

Let’s take a deeper look at what R100 could buy then versus now, and how inflation, driven by global and local factors, has reshaped the economy.

How Inflation Eroded R100’s Value

According to Statistics South Africa (StatsSA), the Consumer Price Index (CPI) reveals that R100 in 1995 is equivalent to R513.72 in 2025, reflecting an annual inflation rate of 5.8%.

While inflation has steadily grown, the cost of certain essentials—particularly food—has outpaced this average increase. Items like eggs, bread, and milk have seen price hikes of over 600%-900%, leaving South Africans struggling to make ends meet.

Price Comparisons: 1995 vs 2025

The table below illustrates how the prices of common items have soared over three decades, based on StatsSA data and averages from major South African retailers:

Item Average Cost (1995) Average Cost (2025) % Change
White bread (700g) R2.14 R18.99 787%
2-litre milk R4.83 R34.99 624%
Lamb chops (per kg) R20.95 R199.99 855%
Chicken fillet (per kg) R10.09 R69.99 594%
Apples (per kg) R4.12 R34.99 749%
Eggs (6-pack) R2.12 R22.99 989%
Cheese (per kg) R22.50 R179.35 697%

In 1995, R100 was enough to purchase all the items in this basket (total: R93.16). However, in 2025, the same basket costs R728.24, far exceeding the inflation-adjusted value of R513.72.

What’s Driving Inflation?

South Africa’s inflation rate has been shaped by a combination of global and local factors:

  1. Global Crises:
    • The COVID-19 pandemic disrupted supply chains, increasing production and transport costs.
    • The Russia-Ukraine conflict caused spikes in global food and fuel prices.
  2. Local Challenges:
    • The weakening rand has made imports more expensive, including farming essentials like fertilizer.
    • Climate change and erratic weather patterns have reduced crop yields, increasing scarcity and driving up prices.
  3. Rising Production Costs:
    • Electricity, fuel, and water prices have surged, adding to the cost of farming and food production.

The Impact on South African Households

For most South Africans, these price increases mean that wages haven’t kept pace with inflation. Food, in particular, has become a heavier burden, with essential items like eggs and bread seeing disproportionate hikes.

Additionally, a weaker currency, combined with ongoing economic challenges, has left many households unable to maintain their standard of living compared to 30 years ago.

Is There a Way Forward?

While inflation is a reality for every economy, measures like supporting local agriculture, stabilizing the rand, and addressing production inefficiencies can help mitigate its impact. In the meantime, understanding the true cost of inflation can help South Africans make more informed decisions about spending and saving.

The comparison between what R100 could buy in 1995 and 2025 paints a stark picture of how inflation has eroded purchasing power. With food prices far outpacing general inflation, the cost of living continues to rise, leaving many South Africans feeling the pinch.

By addressing the root causes of inflation and focusing on sustainable solutions, there’s hope for a more stable economic future. For now, though, R100 is a far cry from what it used to be.

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