Fuel price: More pain for South Africans’ pockets, but no need to panic

Experts urge the public to brace themselves for an even higher cost of living, following another anticipated fuel hike and unexpected increase in food prices.

According to economic consultancy Econometrix’s chief director and economist, Dr Azar Jammine, while there was no need to panic, South Africa was looking at a steeper inflation than what was previously anticipated, but would unlikely be as severe as in other countries.

“So, one must not exaggerate the impact of higher inflation on the economy. It might not rise as much as it does in other countries, but it will certainly rise,” said Jammine.

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“Inflation is likely to rise a little further than people anticipated and for the same reason food prices could rise a little faster because of a shortage of wheat and sunflowers from Ukraine as a result of what is happening there.”

He said it was unfair that inflation always beat wage increases, forcing people to stomach job and pay cuts, putting a lot of pressure on household spending – which ultimately, forces them to live beyond their means.

“This increase will help government’s ability to manage their economic recovery efforts. While protecting the livelihoods of its citizens, we wouldn’t have to borrow money, or live in debt.”

Employment and Labour Minister Thulas Nxesi announced a new minimum wage for SA last month and said the national minimum wage has been increased to R23.19 for an ordinary hour of work.

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