LISTEN | Interest rates hike expected on Thursday, fuel prices likely to rise next week

South Africans will dig even deeper into their pockets because of inflation. File image.
South Africans will dig even deeper into their pockets because of inflation. File image.
Image: Waldo Swiegers/Bloomberg

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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