Fuel price increases are eroding the rand’s purchasing power: Kganyago

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The Reserve Bank Governor, Lesetja Kganyago says the current domestic economic outlook remains unfavourable.

Kganyago was speaking during the University of Limpopo’s Turfloop Graduate School of Leadership series of lectures in Polokwane, Limpopo on Tuesday.

He says steep fuel price increases are among the factors that are eroding the rand’s purchasing power.

Kganyago says, “High inflation erodes what the rand can buy and thus makes South Africans poorer. Over the past 18 months, South Africans along their global counterparts, have enjoyed a rise in the cost of living – this came at a time when South Africans had become accustomed to low and stable inflation, after hovering the upper half target of the target range for a year. South Africa’s inflation breached the upper limit of the SARB 3 to 6% in May 2022 and reaching high of 7.8% in July 2022 before beginning its retreat.”

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