After yesterdays announcement that the CPIX inflation rate had gone up to 7.3%, today the figures for Producer Price Inflation (PPI) has also gone up in South Africa to 9.5 % year on year in October. If any one had little hope of not seeing interest rates going up next week, they can forget about it as it now looks almost certain that interest rates are going to go up next week.

Forecasts for PPI were 9.1% but it is clear that the forecasts were not accurate as the rate jumped to 9.4%, a 0.3% difference. Analysts now predict that interest rates will go up by 50 basis points on December 6 when the countries Monetary Policy Committee (MPC) make a decision about the interest rates.

It looks like we are headed for a tough couple of months if the rates go up.

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