South Africa and much of the world continue to face a significant inflation problem. In SA, the problem is all the more pressing for the countless poor (50% of the population live in poverty, just under that are unemployed) where food inflation continues to track above the national inflation figure. While fuel/transport inflation has stabilized since this time last year the high prices continue to deal a double whammy to consumers. SA relies on its road network to move goods around. Higher fuel costs = higher food ... actually higher everything ... costs. Provinces also differ. The Western Cape's inflation rate continues to rise above the national figure. The government continues to respond with its old interest rate tool. It isn't an encouraging or useful tool in the SA context. Trying to stifle demand where little exists at scale is odd. With an election around the corner, the cost of everything skyrocketing will be top of mind for many voters. The rich will holiday one less time this year. The middle class will eat out once instead of twice a month. The poor won't eat every third day. The election and its aftermath will be a very, very interesting thing to watch.
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