Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
Divorce, Maintenance, Personal Injury, Medical Negligence
The inflation figures we get are always based on a basket of goods as well as interest rates. Changing what is in the basket obviously also will change the inflation rate as different items go up differently and so it is always interesting to discover how the nuts and bolts are changed – or in this case, for example, that the inflation figures which have relied on, amongst other things, the increases in the price of nuts and lentils will be replaced with the cost of Vodka and cheese going forward!
The new basket of goods will also leave out the cost of Vienna sausages but making it more modern, it will include the cost of tablet computers, which one would imagine will bring down the inflation rate because those things generally come out of the higher price and then are reduced. Realistically however, they are also going to give a heavier weighting to electricity and fuel, which are both items that make a larger impact on any person’s monthly “basket of goods” as it were and which are both going up all the time, so that could see inflation going up. At the moment inflation is at approximately 6% and obviously that is a key figure to all employers when they start salary increases in February and March 2013.
Posted by Michael de Broglio on Friday 16-Nov-12
Post a Comment
Comments
Tans said:
on Tuesday 20-Nov-12 04:42 PM
Given the government's apparent "amnesia" as to the true problems facing this country - health, education, jobs, crime - as manifestly potrayed in Gordhan's budget speech not too long ago, I don't forsee the picture getting much healthier. Moreover, the cutting of interest rates short term must manifest itself in negative inflation movement long term. Maybe the government needs to take heed of articles like the one published in the recent Economist magazine and accept that SA's are becoming poorer and poorer by their negative economic policies and mismanagement of government monies.
Robyn said:
on Monday 19-Nov-12 07:42 AM
I hate talking / thinking about this because it just depresses me. Cutting back on yet another thing. Ugh.
Lourien said:
on Friday 16-Nov-12 04:56 PM
As soon as the petrol and electricity go up most of the products prices have to go up to be able to still be successful and make a profit. Unfortunately it’s the people right at the bottom who are already pulling in their belt and that can’t afford “basic goods” that suffer the most from inflation and prices going up....
Cherise said:
on Friday 16-Nov-12 10:44 AM
Inflation is actually really interesting , and sad at the same time. The price of food has become rediculous. you get much less for more money you spend. You become grateful and more responsible with things like Milo just because its gone so expensive.
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!
