Rocketing inflation rates are taking a toll on the average salaried worker, data contained in the latest monthly BankservAfrica Take-home Pay Index (BTPI) shows.
This combined with recent interest rate hikes and weakened rand exchange rate, the ongoing load shedding issues, as well as rising fuel, food and administered prices, are putting the purchasing power of South Africans under huge pressure, the clearing house said.
“Aligned with global trends, local consumer inflation increased to a 13-year high of 7.4% y/y in June, from 6.5% y/y in May, running notably ahead of wage increases in the economy and as such having a meaningful negative impact on South Africans’ purchasing power. “With consumer inflation forecasted to increase further in July, before reaching an upper turning point, more pressure can be expected on consumers and the economy at large.”
Although there were monthly real declines recorded in three of the past six months, average real pensions have held up reasonably well despite rising inflation. The total take-home pay and private pensions processed in value terms increased by 4.8% in real terms and by 12.6% in nominal terms, not seasonally adjusted.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: What's Happening In South African News - July 26, 2022
Read more »
South Africa: What's Happening In South African News - July 25, 2022
Read more »
These businesses are being hardest hit by liquidations in South Africa right nowThe total number of liquidations in South Africa increased by 9.8% in June 2022 compared with June 2021, new data from Statistics South Africa (Stats SA) shows.
Read more »
South Africa submits extradition request for GuptasThe Justice and Correctional services department is ramping up efforts to bring the Gupta brothers to book.
Read more »
Big crime problems fibre networks face in South AfricaCrime slows down South Africa’s fibre network rollouts. Here is how network operators deal with them.
Read more »
No more excuses: Ramaphosa announces massive changes for new energy projects in South AfricaPresident Cyril Ramaphosa has announced that the government will introduce new regulations to allow new generation energy projects to come online faster, on an urgent basis, for a limited time.
Read more »