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We might not be out of the woods yet, but Stats SA has published the latest inflation numbers for South Africa, showing annual consumer inflation slowed to 6.3% in May. This makes it the lowest it’s been since April last year.

But don’t go spending all your cash at Woolies just yet, as the inflation rate remains outside the South African Reserve Bank’s target range of 3% to 6%.

Good news, with a side of bad. Food, transport, housing, and utilities remain the biggest contributors to inflation, accounting for 2.1 and 1 percentage points, respectively.

Although most food and NAB categories recorded lower annual inflation rates in May, those of us who have a sweet tooth, are still stuffed as sugar, sweets and desserts, and cold beverages went up. Prices have increased by 11.9% in the last year.

Economists seem to think this means that people will have more money to spend now, but in line with the decrease in inflation, prices remain high. After all, you will never see any supermarket lower their prices once they have gone up. Inflation just tells you how much it goes up, so it’s a yardstick for your empty pockets.

At least the braai is back on as meat prices declined by 0.4% between April and May, with notable monthly decreases recorded for stewing beef (down 2.4%), pork (down 1.4%), and beef mince (down 1.3%).

The below guide will is a good map of our misery.

At least we’re not Venezuela with its 400% inflation rate. Yet.

Managing your budget is becoming a South African past-time as the prices bite, but managing wealth is another story altogether. Most people get a thousand-mile stare when you talk about future finances, so it’s best to speak with someone who understands the long-term effects of our recent financial storm.

Is all this money-talk making you feel lightheaded? Don’t just trust your Uncle Mike with his investment scheme shaped like a trapezoid, rather talk to Consequence Private Wealth.

Nothing financial can be analysed in isolation. Each element must form part of an overall structure and plan. And Consequence Private Wealth knows how to make a plan come together. Kinda like the A-Team of money matters.

[source:businesstimes]