Oil price implications for inflation, and SA’s poor growth performance

In this podcast, STANLIB’s Chief Economist, Kevin Lings, discusses how the war in the Middle East, now in its 17th day and going on longer than most people anticipated, continues to affect the oil price. At over $100 and with no end in sight to the war in the short term, there are implications for inflation, with most central banks not contemplating interest rate cuts and a risk-off trade unfolding on markets. US inflation data still looks good, but has yet to factor in the oil price. He also discusses SA’s GDP performance for the fourth quarter, which brought SA’s economic growth to 1.1% last year. A substantial increase in petrol and diesel could undermine SA’s growth dynamics.
STANLIB Asset Management (Pty) Ltd is an authorised Financial Services Provider in terms of the FAIS Act. This should not be construed as advice.