Stats SA says Consumer Price Inflation has increased to 3.2% in January from 3.1% in December 2020. This remains at the lower end of the Reserve Bank’s 3% to 6% inflation target.
The main contributors to the marginal increase in the inflation rate came from an increase in the prices of fuel, food and non-alcoholic beverages, among others.
Independent Economist Elise Kruger says inflation is expected to move higher in the coming months.
“A spike in international oil prices, to levels of around 53 dollars per barrel is signalling that we’re going to see fuel price hikes in the order of around 55 cents per litre in March, and on top of that if we look at July we’re now expecting electricity tariffs to increase by 15,63%. So those are external factors that will start to push into the inflation basket.”
Expert slams electricity price increase
Energy expert, Ted Blom, has described as preposterous the over 15% upcoming increase in electricity tariffs.
In a February 15 ruling, the High Court in Pretoria said R10 billion should be added to Eskom’s allowable revenue to be recovered from customers in the 2021/22 financial period.
That judgment followed last year’s ruling in favour of Eskom, which allows the power utility to push for a higher tariff increase than what NERSA was willing to allow.
Blom says, “I think it is preposterous. NERSA didn’t even defend the application against it by Eskom. If you read the Eskom press announcement, you will see that they continue to say that Eskom is well run and well managed, which is totally ridiculous.”
“The whole of SA knows it. I am really astounded that this behaviour by NERSA is going through unchallenged and I don’t want to sound like I am a trouble maker but I think it is time for an energy revolution. We can’t carry on like this. We are going to lose more jobs, more factories and more people are going off the net and yet Eskom keeps pushing up the prices. It is ridiculous,” explains Blom.
Eskom’s electricity price hike will kick in on April 1.
