Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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Inflation has now gone through the targeted maximum of 6%, touching 6,3%. No doubt this is partially because of the rising petrol prices and unfortunately, this tends to result in a vicious circle. As further price increases as a result of increased transport costs over the last few months are factored into the economy, inflation will rise more.
The rise in inflation has led to a decrease in our currency which in turn means we will end up paying more for petrol, which in turn means six months later there will be may well be more inflation in the system because of the increased petrol price! One really has to hope that something is done to protect the currency, so as to stop inflation filtering in via the petrol price but this means that hard decisions have to be made, and those decisions might include, for example, raising the interest rates to make our bonds more attractive to foreigners. Generally, high inflation does lead to increased interest rates and of course that then, while in some ways helping with the cost of commodities, increases the interest one pays on motor vehicles or any financing.
Posted by Michael de Broglio on Monday 02-Sep-13
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Comments
Sinead said:
on Tuesday 10-Sep-13 11:31 AM
Noooooo!!!!!
Bianca said:
on Tuesday 03-Sep-13 09:04 AM
Inflation is causing poverty, the cost of basic living has become so high. I am especially grateful for my job on days like these.
Angelique said:
on Monday 02-Sep-13 02:28 PM
Not a great blog for a Monday! More depressing news... As long as our country doesnt become the next Zimbabwe, I cant yet fully complain. With the way things are going, who knows
Sorea said:
on Monday 02-Sep-13 01:57 PM
Not good news.
benita said:
on Monday 02-Sep-13 11:41 AM
Bad news on a Monday. No wonder so many people can afford the basic needs in live
Juliet said:
on Monday 02-Sep-13 09:10 AM
How does one protect our currency? What can be done and who is supposed to do it?......
Alexis said:
on Monday 02-Sep-13 08:57 AM
Just constantly paying more and more everyday - it just never ends
iola said:
on Monday 02-Sep-13 08:20 AM
The cost of living has become expensive due to inflation rates constantly increasing, and when you hear your parents say "when I was in school I only received an allowance of R10 a month" I dont really believe them because they make it sound like so much money
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!