May inflation figures point to more rate hikes
Consumer budgets are going to be stretched by rising prices, say analysts
In the week the last Covid regulations were lifted, enabling theatres, restaurants and cinemas to pack in patrons, inflation figures for May indicate that consumers will have less money to spend on leisure.
StatsSA reported this week that the May consumer price index (CPI) hit 6.5% — from 5.9% in April and 5.2% in May last year. The May data means inflation has breached the Reserve Bank’s inflation target range of between 3% and 6%, signalling that interest rate hikes could be higher than expected. Economists forecast a hike of up to 75 basis points when the monetary policy committee (MPC) meets on July 21. The current repo rate is 4.75%. ..
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