Consumer prices in the Republic of South Africa are excepted to increase by as much as 500% during the 2010 soccer world cup title, according to unconfirmed analyst reports.
Vendors and retail outlets are planning to boost their prices for unsafe tourists flocking to the country to see the games.
Without knowledge of local market prices tourists would not even suspect they are paying more for their goods, especially those who arrive from countries where the exchange rate is at least 5:1. British tourists will be exchanging their pound Sterling into about 12 South African Rands, while European mainland guests will be receiving about 10 Rands for their Euro. US holiday makers will be exchanging their American dollars into about 7 Rands.
The monthly minimum wage in South Africa is less than R2,000 while in the UK it’s about the equivalent of at least R11,000. Melody Redman, of South Africa’s Budget Insurance Brokers warns South Africans should be sobre during the soccer tournament as demand will be high and price hikes could lead to sharp increase in household expenses before and during the 2010 FIFA World Cup. Reports suggested that prices could escalate some 200-500% during the tournament, and not only be reflected in accommodation and flight prices, but especially food and petrol prices. Analysts at South Africa’s Standard Bank warned that credit card shoppers should be extra vigilant and practice prudence spending.