JOHANNESBURG - The bets are on an interest rate hike - and its bad news for indebted consumers.
Traders now generally agree that the South African Reserve Bank will hike rates by a quarter of a percentage point or 25 basis points, later this month.
The South African Reserve Bank said it is keeping a close eye on the data as inflation or the rate at which prices are rising - starts to increase.
The war in the middle East has pushed up global oil prices and there are signs that higher transport costs are impacting a range of goods like food.
The bank has always been concerned about the so-called second-round effects of higher oil prices.
The bank bank says while it cannot control the current price shock, it remains committed to bringing inflation back to its 3 percent target.