South Africans will dig even deeper into their pockets because of inflation. File image.
Image: Waldo Swiegers/Bloomberg
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South Africans will have to endure a little longer. Economists predict an increase in interest rates, while the Central Energy Fund (CEF) expects fuel prices — except diesel — to rise.

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Chief economist at Investec Annabel Bishop predicts a 50 basis points interest rate increase on Thursday because of high inflation.

Inflation was recorded at 7.2% in December, down 0.2% from November. The inflation rate is still above the South African Reserve Bank’s target range of 3% to 6%.

Last year the repo rate was hiked six times. Bishop says things might slow down this year.

CEF data suggested prices of 93 and 95-octane petrol will rise by 25c/l and high-sulphur (0.05%) diesel by 6c/l on February 1. The price of illuminating paraffin is expected to rise by 8c/l.

Low-sulphur (0.005%) diesel prices are expected to drop by 6c/l.

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