More hikes for cash-strapped consumers

Electricity tariffs, Metrorail tickets and fuel prices are all increasing.

FILE: Electricity tariffs, Metrorail tickets and fuel prices are all increasing. Picture: Supplied.

JOHANNESBURG - Cash-strapped consumers face more financial pressure with three price hikes coming into effect.

Electricity tariffs, Metrorail tickets and fuel prices are all increasing.

Economists say the price hikes will severely impact on mainly the middle class.

Johannesburg residents will pay seven percent more for electricity.

Metrorail users will pay as much as R30 more for monthly tickets and fuel prices are going up significantly.

Debt Rescue Chief Executive Officer (CEO) Neil Roets says the increases could push some people over the edge.

He says the hikes will likely cause an increase in other goods and services.

With inflation well above the South African Reserve Bank (Sarb)'s target of three to six percent, consumers can also expect a hike in interest rates in the near future.

During previous Monitory Police Committee meetings, Sarb Governor Gill Marcus warned South Africa was entering a cycle of inflation tightening.

The Consumer Price Index reached 6,6 percent year-on-year in May, well above the central bank's inflation ceiling, which could force it to act.

Talks are also underway to stop providing 6,000 litres of free water to some households each month.