Consumers advised to heed Mboweni's call

Analysts have called on consumers to heed Mboweni's call to tighten their belts

Analysts have called on consumers to heed Reserve Bank governor Tito Mboweni's call to tighten their belts. This comes as consumers face higher food and fuel price hikes and a 14% hike in Eskom tariffs and the road levy increase of 11 cents which was announced in the Budget speech last month.

Analysts say two issues which could cloud the outlook for consumers have not been resolved. Eskom's 53% proposed tariff hike will force the Reserve Bank to hike lending rates in two weeks' time despite hawkish tones from Mboweni.

Meanwhile Standard Bank economist Shireen Darmalingam has warned that a further source of inflationary risk will be the next round of wage negotiations. Unions are expected to up their wage demands in the light of a series of price hikes and rising inflation.