Consumers encouraged to be economically disciplined

An increasing number of disgruntled citizens seems to be the order of the day in the city of Johannesburg and one source is the frequent price rises. CEO at the Randburg Chamber of Commerce, Linda Blackbeard gave a broad statement on economic growth and the forecast.

“However small the recent petrol increase amount is, it makes the cost per litre 16,2 per cent higher than last year this time which is triple the inflation rate,” she said.

Blackbeard said food inflation has hit a bit of a low recently but that can be expected to increase with the petrol increase, as this affects almost everything down the line. “Water is going to increase by around 12 per cent while the City’s electricity will cost around 7 per cent more. All these prices are increasing faster than the actual inflation,” she said.

According to the CEO, business is also affected by lower turnover because of the difficult economic climate. She said that goods being imported have an impact on petrol prices which affects transport costs.

She added that the outlook for the remainder of the year does seem more promising though, as the economists from Nedbank said, “On the production side, the momentum is forecast to come from recoveries in mining and manufacturing. Services are also expected to recover, driven by stronger consumer spending, as households gradually adjust to the once-off jump in prices caused by the hike in the value-added tax (VAT) rate.”

The economists expect the economy to fare better in 2018 as a whole, but due to the first quarter’s poor outcome, they adjusted their Gross Domestic Product (GDP) growth forecast down to 1,5 per cent from 1,7 per cent previously. They also view domestic risks as likely to increase as public sector unions embark on nationwide strikes and uncertainties around land reform escalate.

Ward 74 councillor Dave Fisher said, “The general price rises that we all are experiencing will put further pressure on household budgets. I encourage residents to spend wisely and ensure that they get value for their hard-earned cash. In many households, there may be items that are luxuries and not essentials. Consumers will need to be disciplined and evaluate their monthly budget with care and consideration.”

Details: Randburg Chamber of Commerce and Industry www.rcci.co.za

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