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 Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

3 Vehicle financing options compared – which is cheaper?

Buying a car is a considered a milestone, both in life and financially. Unless you’re able to fork out the cash, many opt for financing. But often the excitement to drive it off the showroom floor overshadows the need to check if you’re choosing the most-suited option. To help you make the best-informed decision we compare available vehicle financing structures in South Africa.

Read more

Splitwise: Split the bill not the friendship

Collecting your friends’ debt to you can be draining. You don’t want to ruin your friendship with them, and it can also be extremely awkward. I don’t know how many times I have written, deleted, and rephrased texts, reminding people to pay what is due to me.

Read more

Stokvel-friendly accounts – which one is fair?

The stokvel economy is approximately worth R49 billion in South Africa. This is according to the National Stokvel Association of South Africa (Nasasa). Altogether 24% of these stokvels are in Gauteng, while only 6% are in the Western Cape.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Cape Town Fish Market Swartland Special

Price: From R123
When: Until 14 July
Where: Cape Town

Aha Casa do Sol Pay 2 Stay 3 Special

Price: R1,200
When: Until 31 July
Where: Mpumalanga

Open University Free Courses

Price: Free
When: Daily
Where: Online