‘Increases have become unsustainable and have ripple effect on economy’

Economists warn that these hikes could exacerbate the financial strain on low-income families, pushing many to the brink of financial instability.Economist Dawie Roodt said the increases were a result of the country’s stagnant economy and what he called a “fight” for resources, resulting in the average consumer being severely under pressure.

The City of Tshwane, which unveiled its tariff increases on Monday, has slightly higher increases than the City of Johannesburg across the board, while the COJ has the lowest property rate increases across municipalities.The decision saw water and sanitation tariff increases reduced from the proposed 14.9% to 10.9%, while the electricity increase was adjusted from the initially proposed 14% to 12.72%.

This adds to inflationary pressures and inevitably the SA Reserve Bank will increase interest rates, or keep interest rates relatively high.“But it will come to an end because it’s become unsustainable, it has a ripple effect right through the economy as that pushes inflation up.

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