Cost convergence triggers consumer shock
The better-than-expected headline inflation of 3% in February is welcome, but has now already been overtaken by a highly negative inflationary outlook.
In commenting on this easing in the CPI from 3,5% in January, Prof. Raymond Parsons, economist from the North-West University (NWU) Business School, says it is no longer only the external oil price shock that will have a likely future impact on the economy, but also the extent to which it will coincide with several domestic price increases on 1 April.