Feeling the pinch: Can we expect some relief from high transport & food prices?
There has been a major increase in consumer inflation to 5.2% year-on-year for May, this is from 4.4% in April.
Statistics South Africa said that the key driver behind the acceleration in headline CPI inflation was the transport component, the contribution of which increased by a sizeable point 5.2%.
Stats SA says that rising fuel prices had contributed to increasing costs in the transport sector.
Siobhan Redford, RMB economist, joins John Perlman to discuss the implications of this for you, the consumer.
Annual consumer price #inflation hit a 30-month high in May, rising to 5,2% from 4,4% in April. The #CPI increased by 0,1% m/m in May 2021.— Stats SA (@StatsSA) June 23, 2021
Listen here for more: https://t.co/fWMN50tcDp#StatsSA pic.twitter.com/tO61Tb2LRp
We're very much in the middle of the transport inflation storm. It has much less to do with the current rand and oil price and more to do with what was happening this time last year... The price of petrol fell dramatically last year [during worldwide lockdowns]. We're comparing the price of petrol now in May to the year before and the difference is dramatic.Siobhan Redford, RMB economist
Some of [food price hikes] its possibly related to an increase in commodities offshore. A lot our commodities are priced in US dollars.Siobhan Redford, RMB economist
She explains that most of the foods that saw high increases were seasonal ans says the price of food should stabilise with expected good harvests.
Listen to the full interview below...
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