By Everson Luhanga
- Momentum Financial Planning adviser Ross McMillan says South Africa imports oil, so disruptions to global shipping routes quickly push up fuel, transport and food prices.
- McMillan says South Africans should see a financial expert to make sure savings and investments are protected from rising inflation.
Financial adviser Ross McMillan at Momentum Financial Planning says global conflicts are pushing up costs for South African families.
What happens in distant countries is now showing up in taxi fares, grocery prices and monthly budgets. Many households are already struggling to keep up.
McMillan said: “When global tensions flare, they do not just stay on the news, they travel through supply chains and impact your monthly budget.”
He said fuel is where the pressure starts. South Africa imports oil. “When major shipping routes face disruption, global oil prices spike. This increases the cost of commuting and logistics,” McMillan said.
Higher fuel costs then affect transport. Goods must travel across the country before they reach shops. “When fuel prices rise, transport companies pass those costs to retailers, and then to consumers,” McMillan said.
This leads directly to higher food prices. Farming, processing and packaging all depend on energy. “A geopolitical event far away can directly increase your grocery bill,” McMillan said.
Many people react by cutting spending or using savings when costs rise. McMillan said that is not enough. “To truly protect your household, you need to be proactive, not just reactive,” he said.
He said South Africans should review their finances with a financial expert. This includes checking if savings can handle rising costs and if investments are protected from inflation. “The world is unpredictable, but your financial plan does not have to be,” McMillan said.
Pictured above: A shopping trolley.
Image source: File
