Monday , June 17 2024

Fuel Price Decreases in South Africa Will Lower Inflation

A decrease in fuel prices in South Africa is expected to have a positive impact on the country’s high inflation rate. According to economist Dawie Roodt, the decrease is good news for the economy and will have a positive effect on inflation in the coming months, due in part to the high basis points laid down last year.

The Automobile Association (AA) stated that motorists can expect significant fuel price reductions, with petrol, diesel, and illuminating paraffin prices all showing substantial decreases that will take effect in January.

 

Fuel Price Decreases in South Africa Will Lower Inflation (spadetv.africa)

The price decreases are due to a stronger average exchange rate between the South African rand and the US dollar, as well as decreases in international product prices.

The AA noted that the price decrease will not take fuel prices back to levels seen in January 2022, but will go a long way towards relieving the financial burden on South Africans and reducing expenses for travelers. The impact of the price decrease on inflation is expected to be felt in March.

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