COST OF LIVING

Following several years of single-digit inflation and in keeping with global trends, the cost of living rose sharply in 2009. From 9.8% at the end of 2007, inflation stood at around 14% a year later. However, by the second half of 2009, it was down to 12.6% and the local currency was performing more strongly. Sales tax of 14% applies to most consumables, although some basic food items are exempt. This tax is included in the marked price of goods and in bar prices but is usually added to the cost of restaurant meals. Most services are also subject to 14% sales tax.

Groceries
The prices given are a guide only as they vary between different brands and stores. Price differentials can be substantial and shoppers should look out for specials in supermarkets. The following prices were taken from an Mbabane supermarket in November 2009. Because fruit and vegetable prices are subject to seasonal fluctuations they are not included. It should be noted that meat prices are often lower at specialist butchers. The prices of many items have stabilised.

Meat per kilogram
Chicken .................................... E24.99
Sirloin Steak .............................. E79.99
Pork......................................... E48.99
Minced Beef (extra lean) ................ E43.99
Bacon 250 gm ............................. E26.99

Dairy Products

Milk ltr. ....................................E9.89
Butter 500 gm ........................... E26.99+
Cheddar Cheese kg ..................... .E72.99
Cottage Cheese 250 gm ............. ...E12.99
Eggs dozen ................................ E14.58
Pure Fruit Juice ltr ....................... E12.99

Dry Goods

Brown Bread Loaf ....................... E5.99
Bran Flakes 500 gm ................... E25.95
White Sugar kg ......................... E6.59
Biscuits (Tennis) ........................E8.95
Mealie Meal 5 kg ....................... E23.95
Tea Bags 125 g ......................... E16.95+
Instant Coffee 200 gm ................ E59.99

General Household

Toilet Paper - Roll ...................... E3.35
Washing Powers kg .....................E26.99
Toilet Soap 125 gm .................... E5.55
General Cleaner 750 ml ............... E12.55
Disinfectant 500 ml .................... E24.89

Animal Food

Dog Biscuits 8 kg ....................... E76.95
Tinned food 385 gm .................... E9.95

Domestic Staff
This sector of employees includes maids, nannies and gardeners. It comprises a significant proportion of the informal job sector and is a key source of income for many people. There is little legislation to protect the rights of these workers and although the basic minimum wages are reviewed from time to time, they are extremely low. Despite high inflation, the minimum monthly wage remains below E500.00 for a full time house attendant, cook, child minder or gardener. Conscientious employers pay significantly more than the gazetted rates and also supply meals for staff while on duty. The normal working week is 48 hours. Employers are expected to supply suitable protective clothing and overalls. New residents and people employing domestic staff for the first time should be guided by the previous salary received and rates paid by other employers in the area.Hotels & Restaurants
Accommodation prices and categories vary from budget to luxury levels, giving business people and tourists a variety of options. For two people sharing a good budget priced hotel costs about E500 a night; the medium bracket is E900 while the luxury category is around E2500 for a double room. These prices include breakfast. Country clubs around the major sugar estates provide good accommodation at affordable prices, while caravan parks, lodges and bed and breakfast facilities are also reasonably priced. Some hotels offer special rates for group and conference bookings, and provide packages tailored to individual clients. Restaurant prices also vary but a guideline is E350 a couple at a medium priced establishment and E500 in the more expensive bracket. These prices are based on a two-course meal with a bottle of wine plus coffee.

Hotels & Restaurants
Accommodation prices and categories vary from budget to luxury levels, giving business people and tourists a variety of options. For two people sharing a good budget priced hotel costs about E550 a night; the medium bracket is E975 while the luxury category is around E2600 for a double room. These prices include breakfast. Country clubs around the major sugar estates provide good accommodation at affordable prices, while caravan parks, lodges and bed and breakfast facilities are also reasonably priced. Some hotels offer special rates for group and conference bookings, and provide packages tailored to individual clients. Restaurant prices also vary but a guideline is E380 a couple at a medium priced establishment and E600 in the more expensive bracket. These prices are based on a two-course meal with a bottle of wine plus coffee.

Vehicles
A basic car, such as a small hatchback, now costs about E126,900. The middle range is around E273,000 while a luxury 4x4 is priced in the region of E500,000 and upwards. Savings can be made by purchasing used vehicles but it is advisable to buy from a reliable and tested dealer. The prices given are based on the Toyota range.

Petrol & Diesel
From an all-time high in 2008, oil prices stabilised during the past year with substantial decreases in the price of petrol and diesel. At time of writing petrol was priced at E6.95 a litre (from E8.55) and diesel at E7.05 a litre (from E9.30).


Housing

While the price of existing houses stabilised, building costs conversely escalated, rising to around E5,000/sq. m. and upwards for higher quality finishes. Land is priced at E80 to E260 a square metre depending on the land size and location, with rural land priced considerably lower than in the urban areas. Smaller plots cost more per metre than their larger equivalents. A medium sized quality home comprising living areas, three bedrooms and two bathrooms, plus garaging will cost around E1 million to build, plus land. Larger houses tend to cost less per square metre than those with a smaller floor area. The rental market is a seller’s one across the board with top end houses costing in excess of E15,000 a month.