South Africa’s June Price Index (CPI) has released ZAR strong with the country’s inflammation rates. The inflammation rates reached 4.5 in the month of June and stayed the same in July.
The inflation rate in South Africa has remained constant this year, with 4.5 in the months of June and July. South African Rand has finally gained, as a result of this consistency. The cost of transport has eased the public’s relief. While the prices of food, non-alcoholic drinks, housing, and utilities rose further.
The inflation rates in South Africa are mostly guided by basic commodities, water and services being the major driving element. Public Transport, non-alcoholic beverages, electricity and fuels, private transports, education, and insurance being the services following the lead.
Increment in the prices of non-alcoholic beverages is another important step taken by the government. It was a wise step to reduce the cost of public transport as it will improve the living conditions in South Africa significantly.
The main contributors to this change were coke, petroleum, rubber, chemical and plastic products. The industrial sector also finds relief with these rates. Prices of mining have also changed due to the rate change. This change has been very profitable for farmers. The interest rates have decreased in the South African Reserve Bank, with cost-cutting in fuel prices. This is a relief for farmers dealing with the current economic environment.
Other currencies have started feeling threatened with the steady rise in the Rand. The exchange rate of American Dollar to South African Rand lowered from 13.9115 to 13.8908. Meanwhile, there was a change in exchange rate Euros to Rand as well, from 15.5146 to 15.4697 as of 18:55 GMT on 25 July.
European countries are hoping for a decline to be seen in the rates soon enough. Even more so England, as the exchange rate will help the country with Brexit. But the charts don’t show the possibility of that yet. The hope for ZAR rising has remained constant, with the constant inflation rate in South Africa for the past two months. The hopes for South Africa rising towards economic growth with cost-cutting and price changes are high.