SA inflation exceeds 6% target

[Paul_S]

Who's preparing themselves for an interest rate hike?
I just hope with all these ridiculous wage demands we don't end up with a 5% to 10% cycle like we've had in the past.

http://www.iol.co.za/business/news/sa-inflation-exceeds-6-target-1.1565728

 

[TelkomUseless]

I think we have passed 6% many times... by the increases in food/petrol etc. But yea... I don't think we'll see increase in intrest rate imho. Will kill 90% of SA increasing (people are in debt etc)

 

[cerebus]

inflation seems much worse than 6% to me. I think maybe because it's not evenly distributed - rates are going on an uneven curve of distribution now so the well off pay disproportionately much higher rates than the poor, but overall it doesn't appear that there has been that much inflation.

 

[reactor_sa]

Remember government says inflation is 6.3% - for their basket of mostly irrelevant goods! Based on my monthly purchases it's at least double that, easily more.

 

[Lukcydog]

Remember government says inflation is 6.3% - for their basket of mostly irrelevant goods! Based on my monthly purchases it's at least double that, easily more.

Indeed. Unfortunately the basket will be "ruled" by the majority of people in SA (read the poor). Cost of petrol has gone up over 20% this year which affects our pockets directly. And indirectly retailers will shift this fuel increase on the consumers but to a lesser degree ie 6% or more.

 

[Other Pineapple Smurf]

Remember government says inflation is 6.3% - for their basket of mostly irrelevant goods! Based on my monthly purchases it's at least double that, easily more.

We have a dual inflation system in this country. That basket used by the government is for the majority of the country who earn below the bread line.

Our basket is different and we have been 3-5% above CPI for the last few years.

 

[Cius]

Yep, for people who own cars and eat meat inflation is a lot higher than advertised. Most if it is imported inflation though via petrol price rather than too much money chasing too few goods so I doubt the reserve bank will hike rates anytime soon.

 

[Sonic2k]

We have a dual inflation system in this country. That basket used by the government is for the majority of the country who earn below the bread line..

In other words the idiots who vote ANC even though they can feel the rod being shoved up their arse

 

[marine1]

6% my ass.
If they raise rates, get ready for a recession of note

 

[P924]

6% my ass.
If they raise rates, get ready for a recession of note

If they raise inflation - the micro-lending mentality of their voters will cause massive strikes which will lead to much higher inflation. That is besides the fact that the inflation we see today cannot be controlled by the interest rates. In short - they raise interest - inflation goes up; they lower interest rate - inflation goes up. Raising interest has the added bonus of halting economic growth, so maybe we will see it go up, this being Africa and all...

I agree it is no where near 6%. If government believes that, they should cap the maximum increase in rates and taxes, water, electricity, all services they deliver at inflation.

 

[marine1]

If they raise inflation - the micro-lending mentality of their voters will cause massive strikes which will lead to much higher inflation. That is besides the fact that the inflation we see today cannot be controlled by the interest rates. In short - they raise interest - inflation goes up; they lower interest rate - inflation goes up. Raising interest has the added bonus of halting economic growth, so maybe we will see it go up, this being Africa and all...

I agree it is no where near 6%. If government believes that, they should cap the maximum increase in rates and taxes, water, electricity, all services they deliver at inflation.

Can you imagine the defaulting that will happen if they raise rates? The country will slow down to a halt.

 

[krycor]

I reckon they wish they could drop interest rates by 0.5% again but thats gonna screw things up even more so expecting it to remain exactly the same, this also means the expected increase in interest rates mid next yr will have to be pushed further.. :-/ Things in Sa are looking recessionary in the coming yrs

 

[Paul_S]

Things in Sa are looking recessionary in the coming yrs

It's making me think along the lines of using my access bond to invest offshore to hedge against an inflation rate cycle.
Then once/if the Rand strengthens, bring some of the money back in and pay off the house.
If only it was easier to predict the future.

 

[noxibox]

We have a dual inflation system in this country. That basket used by the government is for the majority of the country who earn below the bread line.

Our basket is different and we have been 3-5% above CPI for the last few years.

How is that different to other countries?

 

[supersunbird]

It's making me think along the lines of using my access bond to invest offshore to hedge against an inflation rate cycle.
Then once/if the Rand strengthens, bring some of the money back in and pay off the house.
If only it was easier to predict the future.

Something here does not compute for me...

EDIT: Why is say so is because you want to take the money out when it is expensive to go out and then want to bring it back when it is expensive to come back.

 

[Paul_S]

Something here does not compute for me...

Erm ... yeah.
I mean when the Rand weakens. I'm going with "It's Friday ..."