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Could the petrol price increase on Wednesday force the central bank to increase interest rates again? It is a high possibility as the increase in fuel prices is going to have an affect on the countries inflation. Some analysts are saying that due to the fuel price increase, the consumer inflation (CPIX) could go up to 9.6% in March, edging further away from the central banks target of between 3 – 6%.
At the central banks last meeting, they decided not to increase the interest rates but this time around they maybe forced to. The next meeting will be on April 10 so we may have just a month to brace ourselves for a potential increase in rates. An increase in interest rates would be bad for the consumers who are already struggling as things stand. One must not forget that the poor in South Africa are the ones who are going to suffer the most due to this fuel price increase. Paraffin, which is mostly used for cooking and lighting, will be going up by 76 cents a litre on Wednesday.
How does one expect to survive under these circumstances?
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