SA should eat vegetables, call mom to ease the price pain, says Bank of America

According to Bank of America, South Africans seeking respite from high inflation and looming price increases should consider going vegan, drinking less alcohol and avoiding bread.

While the inflation rate remained stable near the ceiling of the central bank’s 3% to 6% target range in April, the “pain points” for the annual and monthly price increases were the costs of meat products. , fats and oils and alcoholic beverages, Tatonga Rusike, BofA’s sub-Saharan African economist, said in a statement. The increase in the prices of bread and cereals is yet to come, he said.

“It is probably worth eating fruits and vegetables, at home, and being in contact with loved ones as communication costs go down,” she said.

The savings could be used to cover impending “less avoidable” fuel and electricity prices, he said. According to Bank of America estimates, fuel prices likely to rise by around 16% in June will bring annual inflation up to 6.5% and see the average rate of 6% in 2022.

The South African central bank revised its domestic food price inflation forecast for this year to 6.6% from 6.1% on Thursday when it delivered the Biggest interest rate hike in over six years. His estimates show that price pressures are becoming more acute, with inflation now peaking at 6.3% in the second quarter of this year and returning to just 4.5% – the midpoint of the range. target to which he prefers to anchor expectations – in the final quarter of 2024.

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