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South Africa’s Rate Hike Increases Cost Of Living

South Africa’s Rate Hike Increases Cost Of Living

The cost of living in South Africa is perilously high and rising at an alarming rate. The Reserve Bank’s decision to raise rates by a significant 25 basis points last week — making it 5 percent more expensive to borrow — shows its concern about the rate at which consumer prices are rising.

A weakening rand, which has depreciated over 30 percent in the last 18 month is also not helping the course of struggling consumers. For a consumer driven growth country analysts say Africa’s second largest economy may need some kind of support to recover from a slump.

“We need as a matter of urgency to start implementing the national development plan rather than just talking about it. It has been around for about three years now … and what we need to do now is start implementing it,” Chris Gilmour, analysts at ABSA Investments, told CCTV Africa.