VAAL TRIANGLE - South Africa’s inflation rate has increased to a 13-year high. According to Statistics South Africa (Stats SA), consumer inflation increased to seven-point-four percent. This is beyond the target range of between three to six percent of the South African Reserve Bank (SARB). The increase in inflation is expected to encourage the reserve bank to increase the interest rates tomorrow.
Meanwhile, the Bureau for Food and Agricultural Policy says consumers should expect the South African Reserve Bank to raise interest rates by between 50 and 75 basis points tomorrow. The Bureau’s managing director Ferdi Meyer told FarmersWeekly that current inflation rates have been under pressure from rising costs in global commodity prices, supply chain disruptions, Covid-19 and the Russia-Ukraine war. Meyer says the weakening of the rand against the US dollar has had a negative impact on the price of imported products, including fertiliser.