Inflation Slowing, Less Loadshedding & Petrol Price To Drop?
As the Rand makes some recovery vs the US$ and lower than expected loadshedding levels keep the lights on consumers are conservatively optimistic.
The Rand has shown some recovery vs the US$ in the wake of a crash which followed the US starting to threaten sanctions for SA’s perceived “pro Russia” stance.
Joint military exercises, a lack of condemnation at the UN and Secretive Russian ships loading/unloading in the night gave a strong international signal of South Africa’s pro Russia stance.
Though the Government denied everything the threat of sanctions which could wipe out 10% of GDP are scary and the value of the rand dropped accordingly.
But one international, lightly secured road trip (to Ukraine and Russia) later and it seems a very public move to try address perceptions might have worked…a little.
The rand has made some gains vs the Dollar and if no further shocks come it could be helpful.
One of the most surprising things to happen recently is less than expected loadshedding (for the moment).
This has meant businesses doing more business. That in turn means more money moving around which is good for the economy (and for taxes).
Catching thieves, buying in electricity and getting more plants online at the same time seem to have helped and the expected level 8 has not appeared.
Petrol Price To Shrink
With the Rand making some recovery vs the Dollar there is some hope of fuel prices stabilising (depending on what the OPEC people decide with their regular price fixing).
Here is what we are being told may happen to fuel prices next month:
Petrol 93: decrease of 13 cents per litre
Petrol 95: decrease of 4 cents per litre
Illuminating paraffin: decrease of 6 cents per litre
Yes, those are decreases…though you may have to squint to notice them. Still, it is a positive sign, especially during these cold winter months. Stable fuel prices can also mean more stable food prices.
The SARB want to target inflation below 6% and that is getting closer to a reality now (its sitting near 6.5% according to some) as higher interest rates seem to be making an impact. The Rand V Dollar has also helped.
With petrol prices looking to stabilise or even shrink slightly it may also stave off more inflation for a while.
Seems there are reasons to be optimistic.
Still, if you are struggling to get your debt obligations to stabilise then why not take this opportunity to go chat to a professional about how you can turn things around?