Consumers under pressure

This week's key economic data point was June's retail sales figures. Retail sales contracted by 2.5% on a year-on-year basis and consumers are feeling the impact of a high inflation rate and rising interest rates. Business Day checked the figures and it shows that from January to the end of June the petrol price rose by R6.45 per litre, food price inflation was 9% and the prime lending rate increased from 7.5% to 8.25%. Consumer confidence also declined in the second quarter. This has two important consequences. * The Economics Minute is supported by the NWU Business School.