Ina Opperman
Business Journalist
4 minute read
6 Jun 2022
5:25 pm

Cost of living could surge even more, unless GDP growth, private sector hiring accelerates

Ina Opperman

Consumers can most likely look forward to yet another interest rate hike, and even more increases in food, fuel and other prices.

Image: iStock

Faster GDP and private sector employment growth are the only ways to shield consumers from a cost-of-living-surge, as government faces increasing social and political pressure to do something about increasing prices of basic necessities. According to the Bureau for Economic Research at the University of Stellenbosch, the announcement last week that the general fuel levy reduction of R1.50/litre would continue for another month and then be halved to R0.75/litre in July will cost the fiscus R4.5 billion. “Unlike the previous reductions in April and May which were made possible by the sale of strategic oil reserves, it is not yet...