Wednesday, 25th June 2008 at 12:55 pm
Inflation now 10.9%

We may be in for another interest rate hike in South Africa as statistics released today showed that the CPIX has gone up to 10.9% year-on-year in the month of May from 10.4% in April. This does not bode well for the consumers in South Africa who are already suffering from high interest rates, soring food and energy prices. The central bank has often used the rate of inflation to determine interest rates and now that inflation continues to edge further and further away from their target of 3 - 6%, they may be forced to hike interest rates again.

And all this is not taking into account the electricity tariff hikes which will come into effect on the 1st of July. This will surely add to the economic pressures and inflation will continue to rise. Most economists predict that inflation will remain in the double digits for the rest of the year and that there could easily be two more interest rate hikes this year of 50 basis points each.

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Comments

Another fuel price hike | The Rand Today on 27 June, 2008 at 1:45 pm #

[…] Here we go again! As expected, the price of fuel will be going up again next week Wednesday in South Africa. The retail price of petrol will increase by between 75 to 81 cents a litre on Wednesday next week from last month’s 50 cent increase, according to a statement from the department of minerals and energy on Friday. This comes of the back of a 55 cent a litre increase the month before, raising further inflation concerns with inflation already standing at 10.9%. […]


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