Eskom price hike is ‘unsustainable’
Food inflation was unchanged at 6.7% in July, but remained elevated on continued upward pressure from prices for meat and the oils and fats category.
But amid worries that consumers could binge on credit there are signs they are handling debt better
A new model is in the pipeline but the current fund’s liabilities are projected to rise to R393-billion by 2021-2022
It seems 2014 will be a tough year for consumers, and economists say one can only expect respite sometime in 2015.
Mike Schussler responds to a piece by Brian Ashley and Dick Forslund of the Alternative Information and Development Centre published in the M&G.
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Unless reliable, quantifiable data is publicly available, reports cannot be taken seriously, writes Brian Ashley and Dick Forslund.
Mike Schussler responds to Neva Magketla’s article and says she should check her data sources before laying blame on economists.
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President Zuma says not enough is being done to advance women in business sectors, calling for "visible change" in all industries, especially mining.
Women are not as active in the South African economy as they should be due to the high adult unemployment rate in the country, an economist has said.
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/ 24 November 2010
South Africa’s targeted consumer inflation quickened slightly to 3,4% year-on-year in October from 3,2% in September, data showed on Wednesday.
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/ 18 February 2010
South Africa is the biggest welfare state in the world, economist Mike Schussler said on Thursday.
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/ 3 December 2009
Sparks flew at an electricity conference on proposed tariff hikes on Thursday.
The economic crisis could lead to over 300 000 job losses, economist Mike Schussler said in the 8th United Association of SA Employment Report.
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/ 19 November 2008
The emerging-market world is growing faster than the developed world and South Africa is no exception.
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/ 10 November 2008
The price of petrol may drop by between R1,10 a litre and R1,30 a litre in December, an analyst said on Monday.
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/ 29 October 2008
SA’s targeted CPIX slowed for the first time in a year to 13% year-on-year in September from 13,6% in August, data showed on Wednesday.
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/ 23 September 2008
The resignation of Trevor Manuel — alongside 13 senior Cabinet ministers — has caused confusion and volatility in the country’s financial markets.
When prices go up, in most cases consumption goes down, although there are some famous exceptions to this rule.
A ”big drop” in the petrol price is expected in September, T-Sec economist Mike Schussler said on Wednesday.
An increase in the petrol price of between 20 cents and 40 cents is possible in August, said T-Sec economist Mike Schussler on Monday.
It is ingrained in the national consciousness that the only way to deal with inflation is for Tito Mboweni to use increasingly large clubs to clobber the consumer with higher and higher interest rates.
South Africa’s targeted CPIX (consumer inflation less mortgage costs) rate quickened unexpectedly to a near five-and-a-half year high of 10,4% year-on-year in April from 10,1% in March, official data showed on Wednesday. Mike Schussler, economist at T-Sec, said: ”That seals the case for interest-rate hikes. Inflation continues to shock.”
South Africa’s economic growth rate slowed to 2,1% in the first quarter of 2008 on a seasonally adjusted and annualised basis, official data showed on Tuesday, citing a sharp drop in mining due to a power crisis. Statistics South Africa said Q1 GDP slowed from 5,3% in the fourth quarter of 2007.
Salaries should increase on average by about 11,8% in 2008, an employment report released on Thursday shows. ”Higher inflation makes for high salary increases,” said economist Mike Schussler, who compiled the report for the United Association of South Africa trade union.
The increase in the retail price of petrol by 55 cents per litre will result in a ”period of anguish” for South African households, an economist said on Wednesday. Absa economist Chris Hart said the increase would cause food prices to rise and fuel inflation. Hart said the country was expecting a hike in electricity prices as well as an increase in the rate of taxes.
A power cut disrupted proceedings at a briefing in Pretoria on Thursday involving possible class action against Eskom. Lights went off at the briefing hosted by trade union Solidarity shortly before 12.30pm. The briefing discussed the possibility of class action against Eskom over possible job losses as a result of the power crisis.
South Africa’s targeted CPIX (consumer inflation less mortgage costs) rate jumped to a new five-year high of 10,1% in March, beating forecasts and hardening expectations for another interest-rate increase. Statistics South Africa said the targeted measure jumped from 9,4% in February to its highest level since December 2002.
South African Reserve Bank Governor Tito Mboweni has raised the repo rate, at which the South African Reserve Bank lends money to banks, by 50 basis points to 11,5% following a two-day meeting of the bank’s monetary policy committee. The prime overdraft rate therefore increases to 15%.
The Western Cape’s economy remains extremely healthy, although some factors are hampering accelerated growth. This is one of the key findings of the new Sake24 Western Cape Barometer (WCB) launched in Cape Town on Monday. The WCB is a unique statistical index that measures business activity in the province.
South Africa’s producer price inflation (PPI) accelerated above forecasts to 11,2% year-on-year in February from 10,4% in January, official data showed on Thursday.
Statistics South Africa said the headline number, representing domestic output, stood at 1,3% on a monthly basis, compared with 1% previously. Economists polled last week forecast that annual PPI would come in at 10,7%, while the monthly rate of increase was seen at 0,8%.
The increase in South Africa’s consumer price index excluding mortgage rate changes (CPIX) for metro and other areas, which is used by the South African Reserve Bank for its inflation target, was 9,4% year-on-year in February from 8,8% in January. The key drivers were higher food and petrol prices.