VENTURES AFRICA – South Africa inflation figure for May slowed to 5.6 percent from 5.9 percent on year-on-year increase in April, statistics SA (stats SA) showed on Wednesday.
In March and April, the Consumer Price Inflation (CPI) was unchanged at 5.9 percent but analysts expect a rise in the coming months due to the pressure put on the rand.
Consumers are to tighten their belts as food and fuel prices to surge up. The price of petrol is expected to increase steeply next month. The petrol price was lowered by 73c/l in May from April.
“Higher price pressure at the consumer’s level will continue to erode household’s real disposable income,” economist at ETM Analytics, Jana le Roux to state radio SAFM on Wednesday.
She said that they are already starting to see that credit at a household level is deteriorating and that is expected to harm consumption.
“All in all we do believe that the consumer is likely to come under increased pressure in the months to come,” she added.
According to the economic data published by Statistics South Africa on May 22, April Consumer CPI remained unchanged from the March rate at 5.9 percent year-on-year although Economists had expected that the lower year-on-year petrol price inflation would have contributed to a slightly lower value.