Cost of living | Inflation data to be released this week

JOHANNESBURG - Inflation data will also be released this week.   

The Reserve Bank uses interest rates to control inflation or the rate at which prices are rising.

Lower interest rates free up consumer spending and prices could rise, while higher interest rates dampen the spending power of consumers which often slows down price hikes.

READ | Consumer price inflation rises to 4%

In February, inflation hit the Reserve Bank's preferred target of 3 percent. But it has been risen in the three months since then, hitting 4.5 percent in May.

Economists are expecting interest rates to rise to around 4.7 percent in June.

The Bank's Monetary Policy Committee warned in May that the oil price shock could lead to second round effects when price hikes start affecting goods across the economy.

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