<< Chapter < Page Chapter >> Page >

Statistics South Africa has indicated that the CPI (Consumer Price Index) – the all-inclusive measure of inflation – has increased by 10,6% in July. The increase is the result, among other factors, of a 5,2% increase in housing costs as compared with June this year. The increase in interest rates of commercial banks from 15% to 16% in June was offered as reason for the steep increase in housing costs.

Housing, food and transport make up more than half of the CPI basket of goods. Steep increases in these components explain the rise in inflation. Refer to the following table:

THIS IS WHY CONSUMERS HAD TO DIP DEEP INTO THEIR POCKETS

Item %-increase since July 2001

HOUSING 16,76%

FOOD 16,83%

MEDICAL COST 12,72%

TRANSPORT 6,72%

(Source: Standard Bank)

Food prices this year made a considerable contribution to the inflation monster. Mr Craig Irwing of the Consumer Insight Agency, who investigates consumer affairs on behalf of large enterprises, regards the price increases as a call to prioritise. He said that consumers will have to decide what they will sacrifice – this will probably be unavoidable. The big question will just be what? Will it be an extra school shirt or a bottle of wine? Mr Irwing suggested that it will hopefully in most cases be the luxury item.

Ms Basson of Salon Karin expects that fewer people will visit hair salons. She suggested that clients will prefer to apply colour and take care of their hair at home rather than count cents.

Although most families try to eat out from time to time, they spend less per meal. A manager at Spur asserts that clients now order 200g rather than 500g steaks. Whereas they used to eat out twice a month, they can now afford to do so once a month at most.

Medical services have been hit hardest by inflation increases. Patients increasingly inquire about generic equivalents of costly medicines.

(August 2002 - Die Burger )

  1. What are the main causes of the continuing increases in the prices of the following commodities?

Housing:

Transport:

Food:

Medical costs:

  1. Does the above article refer to DEMAND-PULL INFLATION or COST-PUSH INFLATION? Explain why.

Activity 2

INFLATION

Do research on the following topics and hand in a written report.

  1. Explain the function of STATISTICS SOUTH AFRICA (SSA).

Assessment

Learning Outcomes (LOs)

LO 1

the economic cycle

The learner will be able to demonstrate knowledge and understanding of the economic cycle within the context of ‘the economic problem’.

Assessement Standards(ASs)

This is evident when the learner:

describes the historical development of money and its role in societies and their economies;

discusses how trade (import and export) addresses the economic problem (choice and opportunity cost), as well as the role of banks in investing in the economy;

explains how different economic systems address the economic problem (e.g. planned, market and mixed economies);

discusses the role, rights and responsibilities of trade unions;

discusses the role, rights and responsibilities of trade unions;

Overview

ACTIVITY 1: Inflation

Causes of price increases

Housing: Increases in interest rates (3 times in 2002).

Transport: Increases in fuel prices (several times in 2002).

Food: Increases in food prices resulting from rising costs (continuous during 2002).

Medical costs: Deterioration of the exchange rate of the rand, which raises the prices of imports.

  1. Which kind of inflation?

Cost inflation, because the above refers to input costs that lead to rising prices.

ACTIVITY 2: Inflation

Research regarding:

  1. STATISTICS SOUTH AFRICA (SSA): SSA gathers a large range of statistics with regard to the South African social and economic environment to assist the State in its effort to plan effectively.
  2. The CPI basket: The CPI basket is a representative selection of consumer goods, the prices of which are monitored continuously (on a monthly basis) over a wide front to be able to determine price changes. The data are used by SSA to calculate the CPI and the rate of inflation.
  3. Evaluate the initiative and judgement of the learners with regard to the financial position of the consumer.

Questions & Answers

how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
Maciej
Do somebody tell me a best nano engineering book for beginners?
s. Reply
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
s.
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
Tarell
what is the actual application of fullerenes nowadays?
Damian
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
Tarell
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
Virgil
is Bucky paper clear?
CYNTHIA
so some one know about replacing silicon atom with phosphorous in semiconductors device?
s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Harper
Do you know which machine is used to that process?
s.
how to fabricate graphene ink ?
SUYASH Reply
for screen printed electrodes ?
SUYASH
What is lattice structure?
s. Reply
of graphene you mean?
Ebrahim
or in general
Ebrahim
in general
s.
Graphene has a hexagonal structure
tahir
On having this app for quite a bit time, Haven't realised there's a chat room in it.
Cied
what is biological synthesis of nanoparticles
Sanket Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
China
Cied
types of nano material
abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
many many of nanotubes
Porter
what is the k.e before it land
Yasmin
what is the function of carbon nanotubes?
Cesar
I'm interested in nanotube
Uday
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
what is nano technology
Sravani Reply
what is system testing?
AMJAD
preparation of nanomaterial
Victor Reply
Yes, Nanotechnology has a very fast field of applications and their is always something new to do with it...
Himanshu Reply
good afternoon madam
AMJAD
what is system testing
AMJAD
what is the application of nanotechnology?
Stotaw
In this morden time nanotechnology used in many field . 1-Electronics-manufacturad IC ,RAM,MRAM,solar panel etc 2-Helth and Medical-Nanomedicine,Drug Dilivery for cancer treatment etc 3- Atomobile -MEMS, Coating on car etc. and may other field for details you can check at Google
Azam
anybody can imagine what will be happen after 100 years from now in nano tech world
Prasenjit
after 100 year this will be not nanotechnology maybe this technology name will be change . maybe aftet 100 year . we work on electron lable practically about its properties and behaviour by the different instruments
Azam
name doesn't matter , whatever it will be change... I'm taking about effect on circumstances of the microscopic world
Prasenjit
how hard could it be to apply nanotechnology against viral infections such HIV or Ebola?
Damian
silver nanoparticles could handle the job?
Damian
not now but maybe in future only AgNP maybe any other nanomaterials
Azam
Hello
Uday
I'm interested in Nanotube
Uday
this technology will not going on for the long time , so I'm thinking about femtotechnology 10^-15
Prasenjit
can nanotechnology change the direction of the face of the world
Prasenjit Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
Privacy Information Security Software Version 1.1a
Good
Berger describes sociologists as concerned with
Mueller Reply
Got questions? Join the online conversation and get instant answers!
QuizOver.com Reply

Get the best Algebra and trigonometry course in your pocket!





Source:  OpenStax, Economic and management sciences grade 8. OpenStax CNX. Sep 11, 2009 Download for free at http://cnx.org/content/col11040/1.1
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Economic and management sciences grade 8' conversation and receive update notifications?

Ask