Consumers fight Eskom hikes - The Star
- Wits University
Wits economist, Dr Kenneth Creamer, says drought in southern Africa and related rising food costs will put disproportionate pressure on poor households.
Creamer, from the School of Business and Economic Sciences, was quoted in an article in The Star newspaper on Eskom’s application for a 16.6% tariff increase, published on 19 January 2016.
He said: “The recent sharp weakening of the rand is expected to pass through into the South African economy in the form of rising prices of all imported goods. This dynamic will be somewhat mitigated by the fact that oil prices and global inflation has remained low, but it will be compounded by the effects of the drought and increasing food prices.”