South Africa: Rising Food, Fuel Prices Lift Inflation to 10,9 Percent

source: allAfrica
Business Day (Johannesburg)
26 June 2008
Posted to the web 26 June 2008
Mariam Isa

INFLATION rocketed to a 5½-year peak last month, beating forecasts and backing the view that the Reserve Bank will raise interest rates again this year to tame rampant price rises.

Target CPIX inflation rose 10,9% year on year, up from 10,4% in April and its highest since November 2002, driven once again by the soaring costs of food and fuel. Headline consumer prices – a more comprehensive measure of the cost of living – rose 11,7%, up from 11,1% and above market forecasts for an 11,4% rise, official data showed yesterday.

The rand firmed 1,3% to R7,88 to the dollar after the news, which traders said sealed the case for a half-percentage point rise in lending rates at the Bank’s August policy meeting.

“Everyone is now back in the swing of expecting more rate hikes,” said Citigroup senior dealer Julian Wilson. Higher interest rates boost the [continue reading]

  1. Hilton

    Its is all good and well if we get adscent salary.I have work for the goverment for 25 years, and Istill done earn enough to pay for the essentials my family needs.I am now looking at employment overseas, which I regret, but my family needs to eat too

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