Ina Opperman
Business Journalist
4 minute read
27 Jun 2022
1:54 pm

Even higher inflation and repo rate means more consumer pain ahead

Ina Opperman

The recent shocks of higher inflation and a higher repo rate hurt consumers, but it is by no means over, say the experts.

Image: iStock

Even higher inflation and more repo rate increases are expected, which in turn will mean even more food and fuel price increases in coming months. Inflation has reached a five-year peak of 6,5% in May compared to last year, while there is talk of the repo rate increasing by an unprecedented 75 basis points. However, the Bureau of Economic Research (BER) at Stellenbosch University still maintains that the Monetary Policy Committee (MPC) of the Reserve Bank (Sarb) will only increase the repo rate by 50 basis points, instead of the 25 basis points anticipated earlier. Headline consumer inflation (CPI) increased...