DStv Channel 403 Wednesday, 02 October 2024

Blackouts fuelling food inflation: economist

JOHANNESBURG - South Africa's electricity crisis is partly fueling higher prices.

That's the view of one economist after the release of the latest inflation figures.

READ: CPI increases to 7.1%

Food inflation spiked once more in the latest index, this time by 14.4 percent.

It took the headline consumer inflation figure to 7.1 percent in March from 7 percent.

READ: SA's economic trouble | Food basket increases in March

Higher inflation makes it difficult for the Reserve Bank to end its rate hike cycle.

Economist Professor Raymond Parsons says prices are likely to ease around mid-year, but power cuts aren't helping.

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