Difficult times, say experts

Economists around the country agree on one thing: the higher-than-expected CPIX (consumer price index minus mortgage costs) is not good news. Here are some of their views:

Economists around the country agree on one thing: the higher-than-expected CPIX (consumer price index minus mortgage costs) is not good news. Here are some of their views:

Adenaan Hardien, economist at Cadiz African Harvest Asset Management: "On the face of it this is not a good number, and confirms our view that there is certainly quite a high risk at this point for further tightening."

Mike Schussler, economist at T-Sec: "The nightmare continues. Inflationary pressures are growing. This is way above my expectation. It is not good news for the bond market, but it may help the rand with more people foreseeing another upward move in interest rates. It is a yield-driven market at the moment.

"Consumers are feeling battered and the new figures are not going to help interest rates. We are looking at at least another interest rate hike."

Dennis Dykes, economist at Nedcor: "It's a bit disappointing, and having drifted into double digits, psychologically that is not very nice. We expected 9,9percent."

Annabel Bishop, economist at Investec: "Today's publication of higher-than-expected CPIX inflation continues the previous trend which gradually extended the time period CPIX inflation was expected to regain its target range.

"Our official view is one of no change in interest rates in June."

X