Already stretched to breaking point, economists warn that South Africans should brace for more price hikes in the coming months. Fin24 quotes chief economist at the Old Mutual Investment Group, Johann Els as saying that with price pressures only expected to start lifting when oil prices fall back to more normal levels, food inflation – currently at around 6% – could reach 10% before the end of the year. Added to this, today may bring more bad news for households with mortgages and other debt, as some economists expect the monetary policy committee of the SA Reserve Bank to increase the repo rate by 50 basis points.
