Some economists say the Reserve Bank is expected to raise interest rates if it announces the results of its monetary policy committee on Thursday afternoon. This is as the cost of living continues to rise.
The consumer price index, which measures the rate of change in prices, remained up in April at 5.9% year on year.
The main contributions were food, housing and transportation.
FNB economist Kaketso Mano says the consequences of the Russian-Ukrainian conflict are a cause for concern.
“Food and alcoholic beverages also continue to accelerate, now they are 6% year on year and the monthly pressure is 0.7%. Net inflation has contributed, we also see that oils and fats are strongly related to what we see internationally, given that Russia is one of the major suppliers of our palm oil, and so we see that pressure there as well. and it is unfortunate that in the future we continue to see inflationary pressures, and you know that current gasoline prices that have not recovered are falling, and that only adds, and all this together means that June will be a difficult month. ”
3Sixty Global Solutions Group CEO Handani Msibi says inflation of 5.9% is devastating.
Msibi says that the citizens are in a very difficult situation: