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Eskom tariffs will increase by 14% next month
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March 20, 2008, 08:15
An investment bank, Lehman Brothers, has warned that if Eskom is granted its proposed extra 53% electricity price hike, this could increase inflation by a further 2% points. It would then be over 10%, well over the Reserve Bank's inflation target of between 3% - 6%.
Lehman points out this would have knock-on effects like increasing prices and wage demands. The investment bank says it is waiting for reaction to the Eskom request, before formally shifting its inflation forecast.
Meanwhile interest rates, the fuel price and electricity tariffs are all set to rise next month.
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