Mr Price Group warns of rising consumer pressure
South African retail giant Mr Price Group has warned that renewed global geopolitical tensions and rising inflationary pressures could weigh on consumer spending through the remainder of 2026 and into 2027, despite signs of economic recovery earlier this year.
Staff Writer South African retail giant Mr Price Group has warned that renewed global geopolitical tensions and rising inflationary pressures could weigh on consumer spending through the remainder of 2026 and into 2027, despite signs of economic recovery earlier this year. In its latest financial results, the retailer said global geopolitical tensions remained elevated throughout most of 2025, driven by ongoing regional conflicts, fragile diplomatic relations and the trade war initiated by the United States. However, inflation remained relatively contained, and a global interest rate-cutting cycle provided some relief to consumers.
South Africa’s economy showed modest improvement during the period, with gross domestic product (GDP) growth reaching 1.1%. The company noted that real wage growth and disposable income returned to positive territory by the end of 2025, creating a more optimistic outlook for consumers at the start of 2026. That outlook was disrupted by the escalation of the US-Iran conflict in late February 2026, which placed pressure on global oil supplies and caused oil prices to surge by 38.3% during the first quarter of 2026 compared with the final quarter of 2025.
