“What is of concern is we’re still talking about basic transporting of goods, what about the ordinary people who are travelling on a daily basis using public transport, how will they be affected,” Inkunzi Investments’ CIO Clive Ramathibela told CNBC Africa.
“I’m worried about these results coming out tomorrow. Gill Marcus has to balance between trying to make sure that the poorest of the poor are able to live up to their living standards, and [that] those in the upper level of things can also maintain a good course of life.”
Transport costs rose 1.4 per cent month on month and the consumer price inflation rate also rose from 6.3 per cent in July to 6.4 per cent in August.
“The consumer is not having a good time at this present moment. If I look at our market and I look at our retailers, nothing’s really nice and impressive there,” Ramathibela indicated.
“I was looking at the price of maize meal – this is basic food. That price has gone up by 178 per cent in the last 10 years. That is a concern for me and at these levels, it’s not looking good at all.”
Ramathibela added that food inflation, which has gone up 7.1 per cent year on year and 1.1 per cent month on month, is also a significant figure for the South African population.
“Predominantly I think that maybe they’ve just taken an overhead look at it and that’s what they’ve focused on. I’m worried that maybe there’s a crippling effect that digs deeper than just your normal average percentage that is being calculated,” he explained.
“I’m going to take a calculated risk and say that they’ve not done their homework properly and that’s why we’ve seen that 7.1 per cent. I think it’s actually, realistically looking at eight and 8.1 per cent rather.”