The Economy We’re doomed! No, saved! Etc.
According to Bankserv, South African salaries have grown +22.8% to an average of R15,438 over the past five years, all well and good. But the CPI, which measures our cost of living, has risen +26.6% over the same period, you do the maths. And additionally, real take home pay, which considers other variables like escalating fuel prices, a weaker currency, and elevated interest rates, fell to R13,416 per month in May. If you listen to the Bureau of Economic Research (BER), better-than-expected load shedding in June is driving economic activity for the second quarter of the year, which you would think would be good news. But it’s likely to bring an uptick in inflation, and hence another 25-basis point increase by the Reserve Bank later this month.
Comment: Bottom line, tough times prevail. Although better times may be ahead.