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

Shocking inflation rate increase for May spells more trouble for consumers

Ina Opperman

Consumers who are already struggling with high prices and debt, are now almost certain to see the interest rates increase even further.

Image: iStock

The shocking May inflation rate increase to 6,5% announced on Wednesday morning, spells trouble for consumers who are already battle to make ends meet. It is now almost certain that the repo rate will increase by 50 basis points in July, that will mean another increase in interest rates for already heavily indebted consumers. Food and fuel prices pushed inflation to the highest rate in five years in May, with annual consumer price inflation increasing by 0,7% from 5,9% in April and March, according to Statistics SA. This is the highest reading since January 2017 when the rate was 6,6%....