The ZAR Exchange Rate Thread

[Lupus]

Round corner from me, been averaging R13 or so(sometimes special R12 etc, sometimes closer to R14) so been sticking to that over coke... suddenly today I walked in to do some shopping, R17, overnight basically

Yup same here, seen even Coke light hitting 19 so it's not the sugar tax.

 

[FlashSA]

Does anyone believe inflation has dropped in the slightest? Anyone magically find it easier to buy groceries and pay bills these days?

StatsSA busy jumping the shark imo, usually they tend to keep their lies somewhat believable ... seems no more

+1
In my industry, both glass and aluminium extrusions going up by another 10% on 1 October. Not the first increase this year either...

 

[AchmatK]

Does anyone believe inflation has dropped in the slightest? Anyone magically find it easier to buy groceries and pay bills these days?

StatsSA busy jumping the shark imo, usually they tend to keep their lies somewhat believable ... seems no more

Does anyone even believe that the official inflation rate of 4.9% is a true reflection of the real inflation being experienced by the general population?

My municipal bill was ±R2 500 per month for rates, refuse, electricity, water and sewerage. Last month it was just over R3 500.00 with zero water usage and a slight increase in electricity usage. My household inflation is probably sitting close to 15% without me changing anything over the last year.

I'm not sure what the current basket consists of when working out the official inflation rate but I do think it's skewed and not a true reflection of the average household.

 

[Tinuva]

Does anyone even believe that the official inflation rate of 4.9% is a true reflection of the real inflation being experienced by the general population?

My municipal bill was ±R2 500 per month for rates, refuse, electricity, water and sewerage. Last month it was just over R3 500.00 with zero water usage and a slight increase in electricity usage. My household inflation is probably sitting close to 15% without me changing anything over the last year.

I'm not sure what the current basket consists of when working out the official inflation rate but I do think it's skewed and not a true reflection of the average household.

The thing is, it depends on what items they look at when they work out the *SA* inflation rate, which could completely be on things you and me dont use or buy.

Each person should work out their own personal inflation rate, and then you will see its very different from this so called statssa inflation rate. I am pretty sure, my own sit much closer to 8-10%.

 

[Visser]

Except Pepsi is still roughly the same price.

Nope, from R12.99 in January to R16.99 today. Same Spar I buy from.

 

[Lupus]

Nope, from R12.99 in January to R16.99 today. Same Spar I buy from.

Paid R13 yesterday from Checkers

 

[NarrowBandFtw]

How?

already answered:

A drop in price inflation theoretically means salary increases and what not have a snowball's chance in hell to catch up and therefor make products more affordable as your income might be growing faster than the prices of goods.

 

[Visser]

Paid R13 yesterday from Checkers

Thanks, will pass by Checkers tomorrow then. Did not know they are that much cheaper there

 

[Swa]

Does anyone believe inflation has dropped in the slightest? Anyone magically find it easier to buy groceries and pay bills these days?

StatsSA busy jumping the shark imo, usually they tend to keep their lies somewhat believable ... seems no more

Have to do something to counter the bad news of last week.

 

[Swa]

The thing is, it depends on what items they look at when they work out the *SA* inflation rate, which could completely be on things you and me dont use or buy.

Each person should work out their own personal inflation rate, and then you will see its very different from this so called statssa inflation rate. I am pretty sure, my own sit much closer to 8-10%.

The problem is their "basket" of goods includes one of each across a range of products. I don't know about you but my basket doesn't have just one of everything for the year.

 

[krycor]

Uhm side note.. inflation is the rate of change.. Ie if the price increases, its inflation. If it decreases its deflation.

So when they say inflation is slowing or decreasing it means that the rate of increase in the cost of goods is decreasing. Ie the cost of the good/service is not decreasing but the rate of increase is. Also note this is a month to month, quarter to quarter calculation and so saying your goods & services from yesteryear was still cheaper.. well it should be, else deflation would have happen.

Now in a semi-related note I saw this video on the US debt cycle..

So what? Well remember a Mr Trevor Manual made sure we switch most of our debt to ZAR.. well here to can see why we have not suffered as much as Turkey but it’s interesting to note that the coming issues for US will pull down all markets as the debt cycle hits as central banks own dollar debt.

Lastly while China has spent USD like it’s friska on everyplace that it can.. understand that they doing this to spend their USD in buying either assets or returns and lowering their risk. This is why Russia eg has also let go of their holdings they know a re-evaluation of both USD and US stock is coming

 

[rietrot]

Nope, from R12.99 in January to R16.99 today. Same Spar I buy from.

Your problems is Spar. I don't even think coke is in the basket of good that gets measured.

 

[Swa]

Your problems is Spar. I don't even think coke is in the basket of good that gets measured.

Maybe it should be.

 

[rietrot]

Maybe it should be.

Coke? Ja okay, might be difficult to actually measure because that's the one thing always on special. If I go to my local checkers at the right weekend I'll still get it at ~R12. Watch people complain if the coke price points to deflation.

 

[ScottulusMaximus]

Interested to know the correlation between the coke price and the exchange rate, does xe.com track this?

 

[Swa]

Coke? Ja okay, might be difficult to actually measure because that's the one thing always on special. If I go to my local checkers at the right weekend I'll still get it at ~R12. Watch people complain if the coke price points to deflation.

You take the normal price not the specials.

 

[Sideshow Bob]

The problem is their "basket" of goods includes one of each across a range of products. I don't know about you but my basket doesn't have just one of everything for the year.

It is not a problem really. For example, you can come up with some of your own "basket" and I am sure someone will say their basket doesn't have 5 cans of Tuna that you have as they are vegetarians.

 

[Swa]

It is not a problem really. For example, you can come up with some of your own "basket" and I am sure someone will say their basket doesn't have 5 cans of Tuna that you have as they are vegetarians.

Well it is a problem when the basket shows a favourable rate that isn't indicative of most people's situation.

 

[rietrot]

It is not a problem really. For example, you can come up with some of your own "basket" and I am sure someone will say their basket doesn't have 5 cans of Tuna that you have as they are vegetarians.

Well if you come up with your own basket it needs to be realistic. I can not consists of 1 item that went up a lot. If you do it properly you should get about the same results. I'm sure if that's not the case someone would have done it and published better inflation figures by now.

 

[Visser]

Well it is a problem when the basket shows a favourable rate that isn't indicative of most people's situation.

Agreed, hence the reason the figures are a bit skewed in order to favour the government and not really indicative of the real situation facing consumers locally. But then again, wonder if it works this way around the world....