Inflation has been falling and is at 6.9% as of the 29th of July 2009, this is 1.1% down on the previous figures. In other data unemployment is up, less credit is being extended and GDP is expected to contract. Scary news but at least the inflation beast appears to be coming under control. With the economy not expected to look up anytime soon planning for the future becomes imperative, to see you through the lean times ahead. Inflation was influenced by these major factors:
- Food decreased by 0.3%
- Transport increased by 0.5%
- Gauteng inflation lowest in country at 6.4%
With an ongoing investigation into the supermarkets perhaps we will see a reduction in food price inflation. Food prices affect everybody but have the most impact on the poor. When food price inflation is taken into account it is easy to see why people are prepared to strike. If you can't feed your family as much as last year due to high inflation people become desperate and take more militant action than they perhaps would otherwise. Food price inflation is slowing but still not as quickly as everything else.
Many historians link the start of the French Revolution to bread prices. The bread cartels have been fined, but bread is still expensive and pap, our staple, is also expensive. Inflation is the measure of price increases and with a faltering economy food security becomes more important. Planning a budget and sticking to it can help you to make sure that you have enough money left to feed yourself and your family come the last week of the month. These inflation figures are encouraging even if it is only for a little bit of light at the end of the tunnel.