ECONOMISTS call it the three Fs: food, fuel and fun. That's basically what the cost of living revolves around although for the average consumer there are plenty of Bs too: bills, bills and more bills. South Africans are currently staggering under the crushing weight of the cost of living, with everything going up: electricity tariffs, food, petrol. We're in such a squeeze there's precious little left to spend on that last f in the list of three Fs. Because really, fun? What does that mean again?
Interest rates rose recently - for the third time this year - by 0,75 percentage points. It's the largest hike since 1994. The increase was driven by a rise in inflation, which leapt to 6,5% in May from 5,9% in April.
It's not good news for consumers already battling to make ends meet. But it's a necessary evil thanks to inflation (see box, right).
"Whether you're employed or unemployed, inflation is going to affect you," Lesetja Kganyago, governor of the SA Reserve Bank, says.
Higher interest rates may be terrible in many ways but there are ways it can be beneficial. Here's a closer look.
YOUR PENSION PLAN
People with debt pay more when interest rates rise, but those with long-term investments or private pensions earn more in this environment. Basically, the amount or value of your investment increases in the same way the cost of your debt does.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
HOW TO BE YOUR OWN THERAPIST
With more and more of us struggling with our mental health, here's a common-sense guide to coping with life's ups and downs
SPUD: THE MAGIC CONTINUES
John van de Ruit tells us why he decided to write a sequel - and shares how his first book helped him find enduring love
SEX CONTRACT GONE WRONG
A Cape Town couple have been charged with using a young woman as a sex slave-but some say she lost the job she signed up for and now has a grudge against them
LIAM LAID TO REST
More than a month after One Direction singer LIAM PAYNE (31) tragically fell to his death from a balcony in Buenos Aires, Argentina, his loved ones finally got to say their goodbyes.
SHILOH HANGS OUT
THE two young women look like any pair of good friends chatting and laughing as they leave their dance class in Los Angeles.
LEO IN LOVE
He's just turned 50 and it seems Leonardo DiCaprio may finally be ready to settle down
PACKING A PUNCH
Irish actor Paul Mescal beefed up for his role in the blockbuster epic Gladiator II - and fans are loving it
I DIDN'T CHOOSE TO BE A LOVE CHILD
As the illegitimate daughter of the king, she fought to be recognised as part of Belgium's royal family, but Princess Delphine says she still feels unwelcome
'I STILL HAVE NIGHTMARES'
A bite from a spitting cobra 13 years ago nearly killed her but Mikayla survived - and she's made peace with her scars
THE CLAWS ARE OUT!
Things have grown frosty between the Beckhams and the Sussexes as Becks comes out in clear support of William
