Lower fuel price could see easing of inflation – RFA
The Road Freight
Association says the significant drop in the price of fuel that came into
effect on Wednesday may spell good news for consumers in the near future.
The association’s CEO Gavin Kelly says while the reduction in the fuel price is always good news for transporters, it also has a positive impact on the revenue streams for operations.
He says every time there is a decrease in the fuel price the cost per kilometre per kilogramme to transport goods also comes down.
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The price of both grades of petrol decreased by 71 cents per litre on Wednesday, while diesel went down by between 80 and 84 cents per litre.
"What is good news though, is the pressure on the basket of goods that the reserve bank uses to determine CPI or inflation and then the calculation they do to work out whether they should increase the repo rate in other words the lending rates for banks which affects you and I in terms of property and debt we have or higher purchase agreements.
“That pressure is easing up so there should be good news towards the end of the year, definitely beginning next year, where we can see the inflation starting to retreat."
