MyMoney Online

South Africa’s inflation rate is at a 4-year low. 5 reasons why it matters…

Also read the following related article:

* Inflation falls to four-year low

ETM Analytics Managing Director and Economist George Glynos discusses five reasons you should care about Wednesday’s great inflation figure:

  1. The rate of inflation gives a sense of price pressures that affect households through costs that affect disposable income.

  2. It gives you a sense of where to aim when negotiating annual wage increases.

  3. It gives you a sense of the rate at which every rand you have loses its purchasing power. This loss of purchasing power is, ultimately, reflected in rand weakness.

  4. It gives the South African Reserve Bank a sense of where interest rates should be and whether they should promote savings or, conversely, consumption.

  5. Gives insight into the rate at which debt (if constant), such as a home loan, depreciates relative to inflation adjusted earnings.

This drop in inflation is unlikely to be sustained for long.

Not everything is included in the inflation rate.

It’s rare that an economy does well when its currency is weakening.

Also read the following related article:

* Inflation falls to four-year low

Listen to the audio for more detail:


This article first appeared on 702 : South Africa’s inflation rate is at a 4-year low. 5 reasons why it matters…


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Why women must be far more careful with their money than men

Why women must be far more careful with their money than men

Ray White talks to personal finance guru Warren Ingram, who reckons women should take financial planning more seriously than men.

Where to best save and invest so your children can one day go to university

Where to best save and invest so your children can one day go to university

#FeesMustFall, but don’t hold your breath. Take matters into your own hands to ensure a tertiary education, says Warren Ingram.

How to get a tax refund from Sars

How to get a tax refund from Sars

The Money Show’s Bruce Whitfield interviews Daniel Baines, author of “How to get a SARS Refund”.

13 tips for saving hundreds (nay, thousands!) of rands each month

13 tips for saving hundreds (nay, thousands!) of rands each month

The economy is toast. Personal finance expert Warren Ingram shares 13 highly effective tips for making ends meet.

How to get a bank loan approved almost instantly

How to get a bank loan approved almost instantly

Personal financial advisor Samke Ngwenya discusses five steps you should take to get your bank’s approval in no time.

Inflation falls to 4-year low

Inflation falls to 4-year low

South Africa’s Consumer Price Index (CPI) fell to a four-year low (year-on-year) in February, Statistics SA said on Wednesday.

Popular articles
Parents no longer have to travel with children's birth certificates

Parents no longer have to travel with children's birth certificates

The new Home Affairs upgrades to the system include printing parents details at the back of the child's passport.

SA-made Rolkem cake decoration products may not be safe to eat

SA-made Rolkem cake decoration products may not be safe to eat

The UK’s Food Standards Agency issued an advisory, claiming that Rolkem failed to confirm that their ingredients were safe to eat.

KFC South Africa’s Neymar mocking ad… so epic, Nando’s would be proud!

KFC South Africa’s Neymar mocking ad… so epic, Nando’s would be proud!

The South African ad is still trending around the world. Bruce Whitfield interviews branding and advertising expert Andy Rice.

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Bruce Whitfield interviews La Grange about her and Madiba's attitude to money (hopes and fears, successes and failures, etc.)

Criminals targeting homes with aluminium windows, warns neighborhood watch

Criminals targeting homes with aluminium windows, warns neighborhood watch

The Panorama, Welgelegen and Plattekloof Neighbourhood Watch has identified a new house break-in trend.