THE UGLY

Finweek English Edition - - THE WEEK -

In­fla­tion jumped to a near-seven-year high of 7% yearon-year (y-o-y) in Fe­bru­ary, ac­cord­ing to Sta­tis­tics South Africa. One ma­jor con­trib­u­tor to the in­crease was an 8.6% spike y-o-y in food and non-al­co­holic bev­er­age prices. The ef­fects of the drought are clearly vis­i­ble, NKC African Eco­nom­ics said in a note, with the in­dices for fruit and veg­eta­bles up 13.2% y-o-y and 21.6% y-o-y re­spec­tively. How­ever, the worst of the drought’s im­pact is yet to come, it warned, and said it ex­pects the Re­serve Bank to in­crease in­ter­est rates by at least an­other 50 ba­sis points this year.

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