JOHANNESBURG, Jan. 19 (Xinhua) -- The Consumer Price Inflation (CPI) in South Africa continued to spike in December 2021 as the annual inflation rate rose to 5.9 percent from 5.5 percent in November, said Statistics South Africa (Stats SA) on Wednesday.
Patrick Kelly, Chief Director for Price Statistics in Stats SA, said that the cost of living was rising.
"The main contributors...were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services," he said.
Stats SA said that food and non-alcoholic beverages increased by 5.5 percent year-on-year, and contributed 1.0 percentage points to the total CPI annual rate. Housing and utilities grew by 4.2 percent year on year while transport increased by 16.8 percent.
Senior economist Dawie Roodt expected that the Reserve Bank will announce an increase in the repo rate in the coming week.
"Without a doubt, there would be a hike in the repo rate," he told Xinhua.
He also predicted an increase in the CPI this year.
An increase in the repo rate is likely to put more pressure on the struggling lower-middle class that is already struggling to repay home and vehicle loans. ■
