Consumer inflation hits four-month high
Efficient Group chief economist Dawie Roodt says the latest consumer inflation figures will impact the Reserve Bank's repo rate decision.
A decision on the lending rate is expected next week.
Stats SA has revealed annual consumer inflation quickened to 7% in February, up from 6.9% the previous month.
It's the first time in four months we've seen a rise in inflation.
One of the main drivers was food prices, which were up 13.6 percent.
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Roodt says the increase has come as a surprise.
He says hard-pressed consumers need to budget for another possible 25 basis point interest rate hike.
"High-interest rate is very painful for the economy and damaging and is hurting especially low-income categories. So it is not a good thing for the economy, but that is all we have left, I am afraid to say.
"Of course, other things like certain structural adjustments will be much better in getting the inflation lower, but since these things a politically difficult to do though, the only remaining instrument is a higher interest rate; that is why I think we should all support the South African Reserve Bank in its endeavour in trying to get the inflation lower."
