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'Food and fuel prices driving inflation but we could see petrol drop in 2022'

20 October 2021 7:12 PM
Tags:
Petrol price
Fuel prices
Food prices
The Money Show
Stats SA
Inflation
Bruce Whitfield
Consumer price inflation
Food inflation
CPI
Ettiene le Roux

Consumer price inflation was slightly up in September at 5%. Bruce Whitfield interviews Ettienne le Roux, Chief Economist at RMB.
© scyther5/123rf.com

Annual consumer price rose slightly in September to 5,0%, from 4,9% in August.

Statistics South Africa published its latest Consumer Price Index (CPI) on Wednesday.

RELATED: Consumer inflation edges up in August, petrol price in SA hits all-time high

CPI inflation continues to be driven by higher food and fuel prices.

Bruce Whitfield interviews Ettienne le Roux, Chief Economist at Rand Merchant Bank (RMB).

Le Roux notes that food is now 7% more expensive than in September last year and petrol costs 20% more.

RELATED: Another hefty petrol price increase is on the cards for SA motorists

Price increases seem relentless at the moment; is there any prospect of relief?

We started the year with headline inflation at about 3%. It went up as high as 5.2% in May, now we're at 5%.

Ettiene le Roux, Chief Economist - Rand Merchant Bank

It's definitely rising, but I don't think that trajectory will be sustained... We do think that inflation in the second half of next year can actually come down a bit. One important reason for that is because we don't think oil can continue to go up in a straight line.

Ettiene le Roux, Chief Economist - Rand Merchant Bank

I think it is just another commodity and at some stage supply will catch up. If that is the case we can actually see petrol prices coming down sharply next year.

Ettiene le Roux, Chief Economist - Rand Merchant Bank

He says the good news is that there are still few, if any signs of spillover effects.

Excluding food, fuel, and electricity, CPI inflation came to just 3.2% year-on-year - a rate almost no different than six months ago.

Ettiene le Roux, Chief Economist - Rand Merchant Bank

Listen to le Roux's analysis and predictions on The Money Show:




20 October 2021 7:12 PM
Tags:
Petrol price
Fuel prices
Food prices
The Money Show
Stats SA
Inflation
Bruce Whitfield
Consumer price inflation
Food inflation
CPI
Ettiene le Roux

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