South Africa's producer price index (PPI) rose by 11,8% year-on-year in March from 11,2% in February, Statistics South Africa data on Thursday showed. Dawie Roodt, economist at Efficient Group, commented: "I am afraid all these price increases from producers will start filtering to consumers."
The South African government will on Friday announce whether power supply can be increased to mines while maintaining the stability of the system. The review of consumption comes in the wake of last week's surprise announcement that the sector would lose thousands of jobs due to the power crisis.
South African Minister of Minerals and Energy Buyelwa Sonjica has confirmed that job losses at mines are unavoidable, the South African Broadcasting Corporation reported on Friday. Sonjica said this became apparent at Thursday's meeting with labour unions and the Chamber of Mines, but she would not disclose the number of job losses that will take place.
South Africa's mining sector made a positive contribution to the overall GDP in the third quarter of 2007, but this is not expected to be the case in the fourth quarter, Efficient Group economist Fanie Joubert said on Thursday. "The main stumbling block to the mining sector is the strike action as well as deaths on the mines," said Joubert.
The hallways were teeming with shoppers -- and perhaps those just wanting to be seen -- in Soweto's spanking new Maponya Mall during December. According to mall management, approximately 45Â 000 people visited the R650-million shopping centre daily. Restaurants such as News Café and Primi Bazala drew in many upmarket young Sowetans.
South Africa's producer price inflation (PPI) slowed to 9,1% year-on-year in November, below forecasts, from a 9,5% rise in October. On a monthly basis, PPI rose by 0,3% after a 1,1% jump in October. Economists had forecast that annual PPI would come in at 9,7%, while the monthly rate of increase was seen at 0,8%.
South African taxpayers should brace themselves for scant relief when the Budget is announced in February next year as analysts feel Finance Minister Trevor Manuel is likely to be very cautious due to the cyclical risks underpinning the economy. Analysts also feel that the Budget needs to be better harnessed to improve effective expenditure.
As South Africa's economic growth slows and inflation heats up, Finance Minister Trevor Manuel will present a medium-term budget on Tuesday with decidedly less to smile about than six months ago. While analysts expect Manuel to be more cautious in his revenue predictions, they believe past prudence has left him with enough room for manoeuvre.