South Africans pay significantly less for food than their counterparts in the United States and the United Kingdom. However, it changes significantly for other products.
This was revealed in a shopping basket comparison by Daily Investor, which compared the prices of a handful of products in the three countries.
We created the goods basket to match each other as closely as possible. We used the same quantity of food products and standardised products to ensure a like-for-like comparison.
Grocery foods and takeaway
The food basket included dairy products, bread, and different proteins. The rand has significantly higher purchasing power than either the US dollar or the British pound.
South Africa’s more affordable food pricing could also be seen in the lower price of the Big Mac compared to the two foreign countries.
The same basket of food costs R329 in South Africa, R744 in the US, and R708 in the UK.
Technology products like the iPhone 14 and the Samsung Galaxy S23 are much more expensive in South Africa than in the United States.
An iPhone 14 costs R20,999 in South Africa but only R15,589 in the United States.
This shows that the South African rand has relatively low purchasing power when it comes to technology.
Fuel and Electricity
Petrol and diesel are more expensive in South Africa than in the United States but less expensive than in the United Kingdom.
However, electricity is less expensive in South Africa than in the United States and the United Kingdom.
Well-known brand-name clothing is similarly priced in South Africa and the United States but more expensive in the United Kingdom.
It should be noted that ordinary clothing could not be compared as a like-for-like comparison was not possible.
The table below shows the price comparison of popular products in South Africa, the United States, and the United Kingdom.
All prices have been converted to rands.