South Africa Warned Against Economic Crisis

South Africa Warned Against Economic Crisis

Economist and financial advisor Simon Mohapi says South Africa is no better than it was earlier this year, despite inflation numbers released by Statistics South Africa on Wednesday.

The numbers surprised many as the Consumer Price Index (CPI) was reduced from 6.2 % in April, to 6.1 % in May.

Mohapi says food inflation continues to rise and the structural make-up of the country’s economy is still in trouble as it operates above the inflation target of 3-6%.

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Mohapi says rising oil prices are also a big threat as they are likely to increase inflation and economic growth is set to decline as a result of this.

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