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Weak rand may increase inflation

Experts say strikes in the mining sector have contributed to the currency's weakness.

Experts say strikes in the mining sector have also contributed to the downfall.

JOHANNESBURG - Economists are warning inflation may increase in South Africa after the rand hit a fresh five-year low.

The rand weakened to 11.25 against the dollar on Monday, meaning the currency has now fallen by 25 percent since May last year.

Experts say strikes in the mining sector have also contributed to the downfall.

Economist Mike Schussler said, "South Africa first needs to import capital equipment to have the capacity to export and make use of the weak rand. But at the moment the weak rand benefits few people."