Issue No. 2 of 4, 2022
In the first quarter of 2022, we witnessed many new transitions within the world, as the world slowly started re-adjusting to the ” new Norm” we have grown accustomed to. The pandemic engulfed the world into an economic whirlwind – ultimately altering the lives of every individual in some way or form, forcing the hand of many to start a new journey with a mindset of “ it’s now or never”.
The World Health Organization declared a global pandemic in March 2020 due to the rapid spread of COVID-19 all across the globe. However, as many experts believe the virus that causes COVID-19 will never be eradicated, the world must at some point transition away from “pandemic” and toward an “endemic” phase.
In the past quarter, we bear witness to new turbulent times for the global economy, due to Russia’s invasion of Ukraine, the economy was swept into a political ripple effect, and sanctions and alliances saw to global inflation.
Russia has been a prominent distributor globally in the oil and petroleum industry, the question on everyone’s mind Could the world survive without Russian oil and gas?
These sanctions have seen a global increase in petroleum and commodity prices, and South Africans have had to endure unexpected inflation right across multiple products, especially petroleum.
This significant increase has been largely outside South Africa’s control, with global oil prices being pushed up by Russia’s invasion of Ukraine, and the rand’s weakness against a resurgent dollar – the other major component of local fuel prices – being largely at the mercy of global market trends.
CPI Basket components
Absa’s data shows that the following CPI basket components are most likely to be affected by the war (% weight in CPI):
- New vehicle purchases: 5.42%
- Fuel: 4.82%
- Bread and cereals: 3.16%
- Public transport: 2.43%
- Recreational equipment: (including TVs and computers): 0.60%
- Oils and fats: 0.45%
- Household appliances: 0.44%
Read more about the above here
- The National Treasury in cooperation with the energy department announced the General Fuel Levy will be reduced by R1.50 until 31 May 2022.
- An important note is that price changes in May will differ across all magisterial district zones due to the different transport tariff increases and decreases that will be implemented in the month.
- The South African Reserve Bank’s (SARB) has increased the repo rate by 50bps. The repo rate is now at 4.75% and prime is now at 8.25%.
- With effect from 1 March 2022, SARS introduced legislation that allows it to determine a more accurate PAYE deduction amount, which includes pensioner tax changes.
Below are the expected price changes for June 2022
Let’s Talk About Short-Term Insurance
South Africans have faced more unsettling economical backsets within the past quarter KwaZulu Natal Residents and businesses have been enthralled in unforeseen catastrophic floods, that have accumulated millions of Rands worth of damage in one week. This has come as an unprecedented shock as residents and businesses have only just started to find their feet after the brutal and destructive protests which occurred last year, causing many businesses substantial loss of turnover, goods, and property damage.
Risk Cover: Consider these tools to protect yourself
From minor health ailments to permanent disability to death, we have several risk cover tools at our disposal to provide financial protection to ourselves and our loved ones.
Did You Know
Here at Rockfin, we are able to match if not beat your current short-term insurance premium, if not we have an obligation to donate R100.00 to a charity of your choice.
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Why household insurance is more than a “Nice-to-have”
Household insurance is more than a “Nice-to-have”, it takes a lifetime to build up a collection of prized possessions so it’s important to ensure that you have enough financial support to repair or replace them if they get lost, damaged, or stolen.
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When Life Happens
does your medical scheme cover you for everything?
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Yours in Health & Wealth,
The Team @ Rockfin