Trevor Manuel Says Stop Spending

Trevor Manuel would just like to remind you to please stop spending as food inflation will probably cause another rate hike soon.

"If people continue to spend like that ... I think we are likely to see the MPC at the Reserve Bank apply its mind and there is only one instrument that they really have, that they have not used for a long time -- that is, to tighten interest rates," he said. Rising food and fuel costs have added to pressure on inflation, pushing factory gate prices higher and the targeted CPIX inflation measure up towards the upper end of the bank's 3% to 6% target band.