ECONOMISTS call it the three Fs: food, fuel and fun. That's basically what the cost of living revolves around although for the average consumer there are plenty of Bs too: bills, bills and more bills. South Africans are currently staggering under the crushing weight of the cost of living, with everything going up: electricity tariffs, food, petrol. We're in such a squeeze there's precious little left to spend on that last f in the list of three Fs. Because really, fun? What does that mean again?
Interest rates rose recently - for the third time this year - by 0,75 percentage points. It's the largest hike since 1994. The increase was driven by a rise in inflation, which leapt to 6,5% in May from 5,9% in April.
It's not good news for consumers already battling to make ends meet. But it's a necessary evil thanks to inflation (see box, right).
"Whether you're employed or unemployed, inflation is going to affect you," Lesetja Kganyago, governor of the SA Reserve Bank, says.
Higher interest rates may be terrible in many ways but there are ways it can be beneficial. Here's a closer look.
YOUR PENSION PLAN
People with debt pay more when interest rates rise, but those with long-term investments or private pensions earn more in this environment. Basically, the amount or value of your investment increases in the same way the cost of your debt does.
This story is from the 21 July 2022 edition of YOU South Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the 21 July 2022 edition of YOU South Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
YOU'RE BEAUTIFUL!
Kourtney Kardashian and other celebs are honouring the glory of new moms' postpartum bodies
LEON'S ORDEAL IS NO JOKE
Pain has dominated entertainer Leon Schuster's life after a serious back injury landed him in bed. But despite being depressed he remains hopeful he will recover so he can get back to work
'BREAK THE SILENCE'
That's the message of the Scottish comedian who turned his experience of stalking and sexual abuse into a hit Netflix show
A PLACE OF HOPE AND HEALING
Damaged people and abused dogs find a safe haven and a chance to start again at this farm in the Cape Winelands
FROM SPERM DONOR TO DAD OF 37
Peter Ellenstein's life took an unexpected turn when a message from a daughter he never knew he had led to him meeting dozens of his children and exploring what it means to be a father without ever having raised them
GRATEFUL FOR EVERY BREATH
A double lung transplant has given this chef a second chance at life - and he'll never forget the young man who made it possible
THE GAMES ARE GO!
Preparations are well under way in the City of Lights for the world's greatest sporting spectacle
MAKE YOUR VOTE COUNT
We break down what the new rules are and what to expect for the seventh national elections later this month
TOM'S A TOP GIFTER
He's known to go ALL OUT for his movies and stunts, so it's no surprise TOM CRUISE also PULLS OUT ALL THE STOPS for his friends when it comes to GIFTS
TAMING THE BEAST
Recognising and managing your anger can make for a happier and healthier you
