South Africans warned of higher cost of living going forward

South Africans warned of higher cost of living going forward

South Africans could expect an even greater cost of living in the future, according to economists. Statistics South Africa is projected to report a higher inflation rate as a result of rising oil, fuel, and food prices.

On Thursday, the Reserve Bank is anticipated to announce another another interest rate hike.

According to economist Isaac Matshego, the repo rate is projected to rise by 25 basis points. He claims that as a result of Russia’s invasion of Ukraine, petrol prices will reach new highs.

“We expect the inflation rates to increase slightly to 5.9% from 5.7% and the main drivers will be high fuel prices and insurance. We are likely to get a petrol price increase of R2 a litre and diesel increasing by around R3 a litre. So those would keep inflation higher for longer and food price pressures are due to be affected by the Russia-Ukraine conflict. So inflation is likely to remain sticky around six percent over the next few months.”

Price Increases I Cost of living for ordinary households strained: 

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