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South Africans Set for Tough Year as Costs Rise, Stimulus Wanes

  • Surging inflation may lead to interest rate hike on Jan. 27
  • Household spending accounts for about two-thirds of GDP
South African consumer prices rose 5.9% in December. 

South African consumer prices rose 5.9% in December. 

Photographer: Waldo Swiegers/Bloomberg

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South African consumers are in for another difficult year, with energy and fuel prices likely to surge and the central bank and government set to remove the stimulus that’s helped them cope with the damage caused by the coronavirus pandemic.