Economy / General

Inflation jumps to 4.3% in April

CPI for April 2021

Consumer price inflation increased by 4.4% year-on-year as at the end of April 2021, which was greater than the 3.2% year-on-year increase from the previous month. After hovering around the bottom of the target band for a year, inflation increased sharply to close to the midpoint of the band.

A slight reprieve at the pump still positive for farmers

Fuel prices eased for the first time in 2021 on the back of a 2% decrease in international Brent crude oil prices and the rand strengthening by 3% in April relative to the previous month. As of today, petrol prices are 9 cents lower while the two grades of diesel fell by 34 and 30 cents respectively for the 0.05% and the 0.005% sulphur content.

Rapidly rising food chain costs pose quandary for food manufacturers; raise inflation worries

Rapidly rising agricultural producer price inflation, as reflected in last week’s PPI (Producer Price Inflation) for March, poses a conundrum for food manufacturers about whether to absorb these cost increases or try and pass them on to financially constrained consumers, fanning inflation worries.