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Inflatiíon

This week’s CPI inflation figures for March from StatsSA show that year-on-year Consumer Price Index inflation is up again, to 5.9%, from 5.7% in February. Casey Delport, investment analyst at Anchor Capital, says this brought headline CPI once again near the upper limit of the SA Reserve Bank’s 3-6% target range. The rise was largely driven by the transport component of the CPI basket, Delport explains, which in turn was raised by the elevated oil price stemming from Russia’s war on Ukraine. “The government’s reduction of the fuel price levy until the end of May will minimise upside pressure from the fuel component in the near term. However, elevated food prices are expected to remain a feature, especially as the conflict in Eastern Europe persists, exacerbating global supply chain challenges,” she says.

Alternative investment company Anuva Investments has confirmed that the South African Revenue Service will recoup any investments in the Section 12J tax incentive if the investment is not specified in a deceased investor’s will or if the investor emigrates within the five-year holding period of the investment. The incentive, which is no longer applicable to new investments, was introduced in 2009 to encourage South Africans to invest in local companies by receiving a 100% tax deduction. James Rothmann, chief financial officer at Anuva, cited instances of families of investors who died having to repay SARS a recoupment on the full investment. He cautions that the same rule applies to investors who emigrate before the five-year investment term is complete.