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.