Business Maverick: Stagflation — SA consumer inflation accelerates to new 13-year high of 7.8% in July

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South African consumer inflation accelerated to a new 13-year high of 7.8% in July from 7.4% in June, underscoring the rising cost of living that prompted Wednesday’s planned stay-away by trade unions. The usual suspects of food, fuel and transport ...

Cosatu and Saftu appears to have shut little down, but the key reason behind the planned protests — the surging cost of living — was thrown into sharp relief by data which showed the consumer price index racing to a new 13-year high of 7.8% in July from 7.4% in June.

“Municipalities increase service charges in July every year. Electricity tariffs increased on average by 7.5%, equivalent to the 7.5% benchmark approved by the National Energy Regulator of South Africa . This increase is lower than last year’s rise of 13.8% but higher than the 2020 increase of 6.3%,” Stats SA said.

July’s inflation read will not be lost on the South African Reserve Bank , which has hiked its key repo rate by 200 basis points since November of last year from record lows in a bid to cool scorching prices.

 

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Outside forces speak to SA being subjected to multinational corporations that drive the privatised service delivery departments aka SOE's and rising admin costs speak to bloated cadre deployed civil service in same multiplicated vacancies of the 9 provinces burdening the fiscus.

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