Goods get cheaper to make

By Staff Writer

Goods get cheaper to make

Compare banks, get quotes and save with Justmoney

This morning the major story is that things are not as bad as the pundits thought they would be.

Producer Price Inflation (PPI) has slowed from over 19% to 16% which means that it is getting cheaper to produce goods.

Click here to get credit cards.

The Times pointed out that most of this slow down is related to the decreasing petrol prices and slowing costs of electricity. However these stats are also seasonal and the summer Eskom tariff is a driver.

Click here to get car finance.

Business Day also reported on the PPI figures stating that they fell more sharply than expected. This should lead to a better climate to cut interest rates in. It should also have a positive effect on the inflation outlook. The drop in the PPI was reported as being the sharpest monthly dive since the data was first collected in the 1970's.

The interviewed economist was of the opinion that rate cuts would be most likely to start from April next year rather than February. Another economist felt that the figures were pointing to the next interest rate move being of the downward variety, rather than a raise. A third economist reckoned that the Reserve Bank was still too worried about a host of factors to just start cutting rates now, just hoping that the inflationary cycle has come to an end.

The pain is likely to continue into the New Year at least.

Click here to get saving.

The Dispatch carried the PPI story too. In general their interviewed economists were of the same view as all the others regarding the causes of the PPI slowdown, but with just a touch more caution, reckoning on the first interest rate cut happening in June of next year.

The Dispatch also reported that Venezuela had called for OPEC to further cut oil production in December. This would lead to a rise in oil prices. Which would be passed on to the consumer in the form of a petrol hike. So there are still things to worry about.

Click here for insurance quotes.

Another major story today is the JSE's recovery on the basis of foreign capital inflows as wary investors feel better and start heading back to the bourses. Foreigners had been net sellers the last month but this seems to be turning now. However other experts believed the JSE surge to be domestic buyers coming back into the market with a number of professional derivative books contributing to the large volume of trades made this week.

Click here for investments.

And finally iAfrica carried a story describing how almost seven out of ten people are struggling with debt.

Click here to consolidate your debt.

Click here to get debt management.

Click here to use our budget planner.
 

Recent Articles

Featured Should you save or invest your money?

While saving means putting away cash for future use, investment involves purchasing assets which will yield good returns in the future.

Read more

Retirement annuities compared – pick the one for you

When selecting an RA you must know the type of annuity you are investing in. Retirement annuities are divided into two categories: traditional and new generation annuities.

Read more

Recent tax changes – how do they affect you?

In January this year, various amendments to the Taxation Laws Amendment Bill and the Tax Administration Act were announced. While some changes will benefit you, others could be to your disadvantage. Justmoney looks at how some of the recent changes will impact you.

Read more

Claiming from RAF – should you lawyer up?

A claim against the Road Accident Fund (RAF) can take up to five years before settlement. In trying to secure payment faster, should you appoint a lawyer rather than approaching the RAF directly?

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Save R100 when you buy a tracker at Takealot

Price: R289
When: Daily
Where: Online

Pamper yourself and partner for less at Bakwena Day Spa

Price: From R999
When: Until 31 July
Where: Hartbeespoort

Pay only R35 for the new Nandos Boujee Bowl

Price: R35
When: Daily
Where: Nationwide