Are you getting paid more than what inflation eats away?

By Staff Writer

The latest data looking at employment for the last quarter came out today. There are fewer jobs than there were before, this is an effect of the recession. When job growth kicks in again we can be less worried about the after effects of the recession but between June and September 2009 the economy lost around 79000 jobs. On the plus side there has been an average monthly pay increase of 7.8% between August 2008 and 2009. Inflation figures out today show:

 

  • Inflation now at 5.8%
  • Food slightly up by 0.1%
  • and culture high at 8.1%

 

The economy may be losing jobs, which is an effect of the global credit crunch, but it seems that our pay is keeping up with inflation. However we have come from a high inflation environment a year ago into a lower one now, and while the annual inflation rate is below pay rises, this was not the case for most of the last year. Meaning that we now have less money than before, although it is a small percentage, food price inflation has been high, and is still rising so we have to pay more to put food on the table.

The holiday season is upon us and while the temptation to spend may be there, the economy is not as stable as we could wish it to be and the job loss figures show that there are still dangers present. So don't go spending your money just anyhow this season, rather put it into managing your debts, paying off your credit cards and planning a budget for the New Year. Inflation is very close to the Reserve Bank target range, and is just within it at 5.8%, however there is still the possibility of an interest rate rise next year.

Recent Articles

Featured What happens to your medical aid when you move overseas?

While exploring a different country, you may rely on the built-in travel insurance that forms part of your medical aid. However, what happens when you stay for longer than a typical vacation? This week Justmoney has a look at what you should do with your medical aid if you decide to move overseas for a period of time.

Read more

How to apply for government funding for your start-up business

Starting your own business can be challenging, especially if you don’t have the capital to get it off the ground. Fortunately, there are many ways to fund a new business in South Africa. This week Justmoney found out more about these grants, how to apply for them, and what you can do to make your business stand out from the rest.

Read more

MoneySmart: Is it worth your while?

Budgeting apps have revolutionised the way in which consumers manage their finances. From being able to access all your bank accounts to gaining access to budgeting tools, savings structures, and having your spending habits tracked – all in the palm of your hand.

Read more

Local elections, international uncertainty: How will the rand respond?

As we dust off the Easter Holiday cobwebs, we enter the business end of the local election. This brings about a lot of local noise which could increase volatility in the rand. The market will look at any headline news which could lend short-term momentum to the rand after a period of range-bound trading. 

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

KFC Variety Boxes Special

Price: R95
When: Daily
Where: Online

Colosseum Hotel Weekend Special

Price: Available on request
When: Until 25 August
Where: Cape Town

XPRESSO Café Deal

Price: R10
When: Daily
Where: Cape Town