Guiding consumers since 2009

Inflation eases but consumers still struggle

By Staff Writer
There was some good news for consumers on Wednesday after Statistics South Africa announced that consumer inflation eased to 5.1% year-on-year for March compared to 5.7% year-on-year in February.

The figure was perfectly in line with what economists had expected and Stats SA that the average price increase was 0.8% month-on-month.

"Even though the data was better than expected, we do not expect this to translate into further easing in the repo rate," Standard Bank Economist Danelee van Dyk commented on the data.

"Aside from the [South African Reserve Bank] Governor Gill Marcus' recent comments implying stable interest rates, we believe that inflation expectations will have to drop by a considerable margin -- say a further 0,3 to 0,5 percentage points --before another rate cut will be reconsidered," she said.

"In a similar vein, second quarter economic data would have to disappoint to bring about the same decision," Van Dyk said.

Despite this drop, consumers are starting to bear the brunt of price hikes in electricity and petrol which will ultimately result in drastic prices surges for in food.

It is more important than ever for consumer to be money smart to avoid falling deeper down the rabbit hole of debt.

Recent Articles

Featured Times are tough, but keep your debt under control

While the whole world is going through a rough patch, you may also be feeling the pinch. With the country in crisis, it may be difficult to keep up with your debt instalments. However, abandoning your debt obligations is not the solution.

Debt Series Part 2: Interest rates - unpacked

In the second part of our Debt-ucate series we explore interest rates –from how to get a better rate to what influences it, and how this affects the cost of your debt.

Debt counselling – the two sides of the coin

Being overindebted doesn’t just put a strain on your personal finances; it also puts a strain on your state of mind. The best solution is to start the process of debt counselling so that you can escape the debt cycle. But what are the ups and downs of joining this debt relief programme?

Travel ban – how to claim for the loss incurred

As with the recent Covid-19 pandemic, governments sometimes issue travel bans to prevent people from travelling to other countries. This becomes even more complicated if you’ve already planned and paid for your trip. Your flights will be cancelled, and you may lose money from cancelled accommodation arrangements. How do you claim for the financial losses incurred due to a travel ban?

Deals

Get 30% back when you fill up with your Absa card

Price: Available on request
When: Daily
Where: Nationwide

Get 50% back in eBucks when you apply for an FNB home loan

Price: Available on request
When: Daily
Where: Nationwide

Get 50% off your online fees when you pay with Capitec card

Price: Available on request
When: Daily
Where: Online