Inflation falls for third month in a row

[FoXtroT]

so anyway inflation comes mostly from the demand and supply of currency, if you print more money, you get more inflation, what you discussed are more price "shocks"

that's the theory, we are still waiting for that to happen in the major economies where they are increasing money supply at alarming rates

A shock is something that happens suddenly and usually over a short period of time. Inflation is a general increase in the price of goods and services. Monetary supply and demand is a major part of it (which is why the reserve bank uses them to help control inflation) but its not the only factor leading to inflation.

I mean, one of the major reasons for our current high inflation has been the rise in input costs, from fuel to basic foods (due to the drought).

 

[saturnz]

A shock is something that happens suddenly and usually over a short period of time. Inflation is a general increase in the price of goods and services. Monetary supply and demand is a major part of it (which is why the reserve bank uses them to help control inflation) but its not the only factor leading to inflation.

I used the term loosely, and a short period of time can mean anything.

 

[marine1]

It means the rate of increase is going down.

It’s going up by 5% instead of 6% last year for example.

riiight sorry man really did not think about what I was writing

 

[JungleBoy]

A 100 basis point cut would be nice. Here's to hoping!

 

[Oppiekoffie]

I must be living in a different South Africa, because where I live inflation seems to be getting higher...

I'm thinking exactly the same. they're bullsh**ting us. You look at how much the price of meat, milk, eggs etc gone up, its closer to 20%.

 

[Vrotappel]

A 100 basis point cut would be nice. Here's to hoping!

Not what we want when looking at FDI.

 

[supersunbird]

Not what we want when looking at FDI.

Why?

 

[supersunbird]

I'm thinking exactly the same. they're bullsh**ting us. You look at how much the price of meat, milk, eggs etc gone up, its closer to 20%.

In the last 3 months?

 

[Oppiekoffie]

In the last 3 months?

At my local Pick & Pay, now I love beef short ribs, not too long ago(April,March) R67/kg, its now R87/kg... FFS!!!!

 

[Joeboy69]

So someone on my FB said its consumer inflation meaning spending and not actual normal inflation meaning price of goods?

CPI is the consumer price index, which is a measure of how prices change of goods and services purchased by an average consumer household.

The only relation to spending is that the latter influence the weights/importance of the spending on a particular good or service.

 

[Joeboy69]

Well, if you take a look at the actual publication that konfab posted earlier you'll see that the stats agree with you. Food inflation is running at 7% p.a. with inflation on meat at 13% p.a. and sugar, sweets, etc at 17% p.a.

It's quite easy to work out an approximate measure of your personal inflation rate by just replacing the weights used in the headline CPI construction with the weighting in your actual expenses.

Seeing as most people on mybroadband are probably in the higher LSM brackets the weights used for headline CPI are not directly relevant. CPI is used to measure price inflation for everybody in the country, the vast majority of which are in the lower LSM brackets.

Exactly.

 

[Vrotappel]

Why?

FDI is influenced by a country's risk factors. Monetary policy is a mayor risk factor.

 

[Joeboy69]

no, I take it you never did calculus at school, the rate of change came down (second derivative), but its still positive

only deflation will result in prices falling, inflation always will result in an increase in prices

Yip, the prices are rising slower on average than the previous period. But still increasing.

 

[Joeboy69]

Yup, what utter crap. Wonder how they work this rubbish out

Feel free to ask specifics and I will try to oblige

 

[Splinter]

it may have a monetary value attached to it, but my price is still 10 cars.

SARS does not change that fact

so if you attached a rand value to the 10 cars and rocked up with the cash, I would not accept it

But SARS would evaluate you on the monetary equivalent of those 10 cars....

 

[biometrics]

A 100 basis point cut would be nice. Here's to hoping!

Screw that, increase it by 100. The Cape Town property market bubble needs to deflate a bit. I want to buy next year.

 

[saturnz]

Screw that, increase it by 100. The Cape Town property market bubble needs to deflate a bit. I want to buy next year.

I don't see how it would affect the market when it's quite common for buyers to pay in cash

 

[Gnome]

Living in the City in Cape Town I haven't noticed any downturn. In fact buildings are being built on every street corner. Businesses are opening up and the place is booming...

I mean the rest of the country is f#@ked but Cape Town is definitely living another reality.
Wondering if/when that will come crashing down.

I've been getting a LOT of contact on LinkedIn recently (more than usual). Again not sure what that means, but I'm not sure this recession is hitting all sectors.

 

[biometrics]

I don't see how it would affect the market when it's quite common for buyers to pay in cash

Prove it.

 

[biometrics]

Living in the City in Cape Town I haven't noticed any downturn. In fact buildings are being built on every street corner. Businesses are opening up and the place is booming...

I mean the rest of the country is f#@ked but Cape Town is definitely living another reality.
Wondering if/when that will come crashing down.

I've been getting a LOT of contact on LinkedIn recently (more than usual). Again not sure what that means, but I'm not sure this recession is hitting all sectors.

CBD and southern suburbs perhaps. Prices are dropping up the west coast.