Streaming issues? Report here
money-show-thumbnailjpg money-show-thumbnailjpg
The Money Show with Bruce Whitfield
18:00 - 20:00
volume_up
volume_mute

Up Next: Tonight with Lester Kiewit
See full line-up
The Money Show with Bruce Whitfield
18:00 - 20:00

Home
arrow_forward
Business

Annual consumer price inflation shot up at a rate of 4.5% - should we worry?

19 February 2020 7:08 PM
Tags:
Inflation
George Glynos
#Eskom
consumer price
Annual consumer price inflation increased at a faster rate of 4.5% in January, compared to 4% in December.

Annual consumer price inflation (CPI) was 4.5% in January, up from 4.0% in December, buoyed by, among other factors, increases in fuel prices.

The Money Show's Bruce Whitfield asks George Glynos of ETM Analytics, if this is cause for major worry.

I don't think we should be worried yet, this was very much in line with expectations. There is not anything dramatic to pull out of this.

George Glynos - Co-Founder, Director and head of Research - ETM Analytics

I think the more important trend that is unfolding is the trend of disinflation - in other words the lack of monetary space for inflation to take hold in any meaningful way. There's a credit cycle that unfolds and that credit cycle is a function of all borrowing that takes place in the private sector, corporate or household. That credit cycle ultimately drives growth and money supply. The stronger the growth in money supply the more space there is for inflation to breed. Quite frankly at the moment we have one of the tightest credit cycles in South Africa's history - which means In SA there is not a lot of room for inflation to take hold - so inflation for the remainder of the year is likely to be suppressed.

George Glynos - Co-Founder, Director and head of Research - ETM Analytics

Even in the event of a downgrade, just remember, a tight credit environment is what you'll find even if you get a price shock such as fuel prices shooting up. All it means is that within the household budget people would have to reprioritise expenditure. Those price pressures come through and that is the element that keeps inflation constrained.

George Glynos - Co-Founder, Director and head of Research - ETM Analytics

Listen to the full interview below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : Annual consumer price inflation shot up at a rate of 4.5% - should we worry?


19 February 2020 7:08 PM
Tags:
Inflation
George Glynos
#Eskom
consumer price

Recommended

More from Business

background-conceptual-contemporary-help

Get up to 100% off your April rent, perhaps May too - Property Industry Group

7 April 2020 7:05 PM

“There can be up to 100% off the rental in April and potentially even in May,” says Estienne de Klerk (Property Industry Group).

Share this:
Read More arrow_forward

200406-lockdowngif

'Every country successfully dealing with Covid-19 have extended their lockdowns'

7 April 2020 6:35 PM

The Money Show’s Bruce Whitfield interviews futurist Graeme Codrington and public health specialist Prof Susan Goldstein.

Share this:
Read More arrow_forward

171107foschinijpg

'Up to 100% rental relief for some retail tenants' - Property Industry Group

7 April 2020 2:31 PM

New rental relief measures announced on Tuesday will amount to as much as 100% off for some retail tenants.

Share this:
Read More arrow_forward

Cigarettes and alcohol 123rfbusiness 123rflifestyle 123rf

Cigarette and alcohol sales ban costing taxman about R135 million a day

7 April 2020 2:05 PM

21-day lockdown ban encourages the ongoing sale of illicit cigarettes and organised crime -Justice Project SA's Howard Dombovsky.

Share this:
Read More arrow_forward

karen-zoid.jpg

Make Money Mondays: Karen Zoid in a time of coronavirus

6 April 2020 9:00 PM

Musician and television host at Republiek van Zoid Afrika says because of COVID-19people are all the same now.

Share this:
Read More arrow_forward

Displaced foreign nationals

How are local non-profit organisations impacted by COVID-19 and shutdown?

6 April 2020 8:12 PM

Charities Aid Foundation Southern Africa CEO Gill Bates says the main concern is those organisations that are on the fringes.

Share this:
Read More arrow_forward

video-conferencing-skype-zoom-online-chat-internet-white-woman-123rf-lifestyle

In the new world of virtual meetings and interviews, what are the ground rules?

6 April 2020 7:49 PM

World Wide Worx MD Arthur Goldstuck gives tips on what to do during an interview on Skype or something similar.

Share this:
Read More arrow_forward

200319-lesetja-kganyago-edjpg

SARB warns that the economy may shrink by up to 4% due to coronavirus

6 April 2020 7:26 PM

George Glynos, head of research at ETM Analytics, says the those lockdowns are likely to be extended for longer than 21 days.

Share this:
Read More arrow_forward

200226tito7gif

Don't fall into an IMF debt trap Tito Mboweni! - political commentator

5 April 2020 10:49 AM

Oscar van Heerden on the reasons he believes South Africa should not turn to the IMF for a general loan amid Covid-19 crisis.

Share this:
Read More arrow_forward

MTN-cellphone-network-service-provider-data-airtime-calls-123rf

Govt can as of Thursday use phone data to trace users to slow spread of Covid-19

3 April 2020 2:12 PM

"The data will be de-identified after Covid-19," says Ahmore Burger-Smidt (Werksmans Attorneys). "Until then, is it secure?"

Share this:
Read More arrow_forward