With South Africa’s petrol price set to reach record levels in July, inflation is expected to surpass the 7% range, says Himal Parbhoo, chief executive of FNB Retail Cash Investments.

As South African households prepare for weeks of load shedding ahead, they should also brace for a few more economic punches heading their way.

Eskom chief operating officer Jan Oberholzer says load shedding is set to continue throughout the weekend as the power utility works to restore its units and reserves following prolonged strike action.

The June 2022 Household Affordability Index in June shows that the average cost of the household food basket is R4 688.81.

Agri SA yesterday made a clarion call for the government to step in after Tiger Brands gave notice of its intention to close down its canning factory in Ashton, Western Cape after it failed to find a buyer, which will hit 4 500 workers and cause socio-economic devastation to the surrounding community.

Statistics South Africa has published its latest consumer price index, showing that annual consumer price inflation has broken through the upper limit of the Reserve Bank’s target range.

Consumer prices are skyrocketing, and we are all feeling it. Driven by a perfect storm of COVID restrictions and impacts over the last two years followed by a major European war, and significantly for South Africa, a Chinese economic slowdown, the prices of fuel and the basic food basket are likely to continue to climb over the medium term.

South Africa’s most important economic release this week will be the consumer inflation (CPI) print by Statistics South Africa on Wednesday (22 June), say economists at the Bureau for Economic Research (BER).

Over the past few months, the cost of living in South Africa has dramatically shot up, as a result of the likes of rising inflation, petrol hikes, and flat salaries.

The rate of inflation is above central bank targets in virtually every major developed and emerging market economy, says senior emerging markets economist at Schroders David Rees.

The high cost of food is a subject on everyone’s lips. Reasons for the increases range from the war in Ukraine to the weaker rand, and natural disasters such as the floods in KwaZulu-Natal – a province in which many South African factories are situated.

The latest Household Affordability Index by the Pietermaritzburg Economic Justice & Dignity group (PMBEJD) shows that food prices continued to climb in May 2022.