Thursday, 30th August 2007 at 4:53 am
The figures are out and inflation rises again

therandtoday1.jpgWhere is this all headed? Inflation jumped to 6.5% last month and this can only result in there being further interest rate hikes in the near future. What is causing this escalation in the inflation figures? Some attribute it to the rising prices of food and petrol.

Many have commented that the rise in inflation is not attributed only to factors within South Africa but genenral world economic factors such as the rising price in oil. We all know that the price of oil plays a big part in determining economics across the world. Take for example what happend when the USA decided to invade Iraq, the price of oil just sky rocketed. Now if the world price of oil goes up then surely the price of fuel in South Africa will go up. If the price of fuel goes up then everything else goes up.




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Comments

des on 30 August, 2007 at 9:18 pm #

I think that as long as there is any uncertainty with crude oil deliveries (and the hurricane season provides such uncertainty off the gulf of mexico), we will continue to see rising fuel prices will adversely affect inflation. I don’t think we will see an increase in interest rates just yet, ithink the central bank will hold off till the end of the year and then assess what the cause of the inflation is/was.


Rob Harvey on 7 September, 2007 at 8:41 am #

Look at where the oil price is now and the outlooks are not looking good on the interest rate and inflation front. I am sure the where be another rate hike before the end of the year.


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