Ripple effect on consumer goods expected
UASA is concerned about how today’s announcement by the Department of Energy of yet another substantial increase in the retail petrol price of 34c per litre will impact on the average South African worker.
South Africans have hardly had time to recover from the Festive Season and the expensive beginning of the school year.
We deplore these announcements, which make it so much more difficult for thousands of families who are battling to make ends meet and who, as a result of these hefty price hikes, will have to face the ripple effect on consumer goods in months to come.
UASA predicts that an increase of 34 cents a litre will cause a steep rise in the prices of all consumer goods in the months to come, as a direct result of the outrageous fuel price increases. This may well lead to more job losses as employers are forced to cut costs, and could have an adverse effect on inflation and jeopardise the South African Reserve Bank’s efforts to keep inflation within the set target range.
The South African consumer has nowhere to hide, they have no recourse. They are looking at a bumpy 2012, with the cost of living soaring out of reach.