In June, BankservAfrica released another set of dismal monthly salary data for South Africa (SA). The Take-home Pay Index (BTPI) showed that, during the month of May, the average real monthly salary (removing the effect of inflation) in SA was only R14 696; this plummeted by 6.7% since May 2021.
Read full articleStatistics South Africa (Stats SA) reported last week that, during the month of May, household prices increased by roughly 6.5% year-on-year. Higher inflation was partly driven by a low base effect, but more so by higher fuel prices, which have been increasing owing to the ongoing war in Ukraine as well as the sanctions imposed by the West. Fuel prices in May of this year are 32.5% higher than they were a year ago.
Read full articleEven after increasing interest rates by 0.75%, the United States (US) Federal Reserve (Fed) still believes that it is possible for the central bank to achieve a soft landing in which they can tame inflation without pushing the economy into a recession. Consumers, however, seem to disagree, and this is in line with economic data showing the worst reading of consumer confidence since the 1970s
Read full articleThe rand has remained resilient, albeit volatile, as negative global drivers continue to clash against many positive local drivers. At one point, the rand touched R15.18 last week, before poor performing global indicators caused the rand to depreciate back to levels around R15.90.
Read full articleIt has been almost three decades since the African National Congress (ANC) came into power. Our job, as economists, is to interpret the economic results of their actions, or, in this case, the lack thereof. To do this, we try to determine how the decisions of the ruling party, in aggregate, impact on the economy and, by implication, on the livelihoods of South Africans.
Read full articleDuring the first week of May, the Federal Reserve (Fed) in the United States (US) increased interest rates by 0.5%, the first time since 2000. Later, during the last week of the month, the South African Reserve Bank (SARB) followed suit.
Read full articleIn a daring move, the South African Reserve Bank (SARB) last week decided to increase interest rates by 0.5%, despite the pressure that it will undoubtedly place on South African consumers. Although 15 out of the 24 analysts that were surveyed, expected a 0.5% increase, I cannot help but wonder if it was not a little too much.
Read full articleDespite the robust rally at the end of the week, all three major equity market indices in the United States (US) – the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite – posted weekly losses. In total, the Nasdaq has lost $7.6 trillion in the current decline.
Read full articleWe ended April anticipating the announcement from the United States (US) Federal Reserve (Fed). Because of all of the uncertainty, the technology-heavy Nasdaq Composite contracted 13.3% in April, its worst monthly drop since the global financial crisis in 2008.
Read full articleThe past month has been a wild one! The technology-heavy Nasdaq Composite, a stock market index that includes almost all of the stocks listed on the Nasdaq stock exchange in the United States (US), contracted 13.3% in April. This was its worst monthly drop since the global financial crisis in 2008.
Read full articleIt feels so long ago, but markets started the year believing that the Fed was more bark than bite, interest rates were to rise slowly, inflation was (mostly) transitory, and the world would continue to reopen in an orderly fashion.
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