R4,400 social grants for South Africa, and South Africans being tracked online
The South African rand edged up on Friday, before pulling back after the release of a key US inflation report later in the day.
The rand ended the week trading around R16.12 to the dollar, slightly stronger than the near-R16.20 levels it had reached this week.
Global investor focus was on US inflation data, as it could shape the case for a Federal Reserve rate hike next week.
On Wednesday, data showed US producer prices increased 0.4% in August, meeting market expectations as energy prices rebounded during the month.
The CPI report, out late on Friday local time, showed that US consumer prices held steady at 3.4% in August. However, core monthly inflation data rose 0.3% above the expected 0.2%.
The US dollar last traded flat against a basket of currencies ahead of the report, before softening.
The consumer price report suggests inflation is making little progress toward the Fed’s goal amid soaring energy costs from the war in Iran, tariffs, and the data centre build-out.
Fed Chairman Kevin Warsh has been reluctant to tip his hand on the central bank’s next move, but in a speech at the Jackson Hole symposium last month he said the Fed would “have work to do” if inflation doesn’t cool “at sufficient speed.”
Oil prices also fell on Friday, but still ended the week above $100 a barrel for the first time since mid-May.
This, as increasing attacks along key shipping routes in the Middle East fuel fears of a prolonged disruption to supplies.
This has put South Africa on a bad path for petrol and diesel price hikes in October.
In common with other risk-sensitive currencies, the rand often takes cues from global drivers such as US economic indicators and monetary policy.
The CPI reading has spurred analysts and economists to anticipate an interest rate hike in the United States next week, which is expected to reverberate through other economies, such as South Africa.
Several Wall Street firms shifted their September Fed calls after the inflation report, now expecting a 25 bps hike.
In turn, views on local interest rate moves are also shifting, with some now anticipating a hike when the South African Reserve Bank meets in two weeks’ time.
5 important things happening in South Africa today
R4,400 social grant: Efficient Group chief economist Dawie Roodt said the proposal to increase monthly social grants to R4,400 would “break the bank” because South Africa’s tax base is too small. The proposal emerged during election campaigning by the EFF’s Julius Malema, promising to expand social welfare. [Daily Investor]
South Africans being tracked: Academics are warning internet users in South Africa against clicking “accept all” on cookie banners when visiting websites, as this could allow third-party tracking services to harvest data about them. [MyBroadband]
Taxpayers foot the bill for the RAF: The Road Accident Fund (RAF) spent R28.5 million on 16 employees suspended within the last two years in South Africa. At the same time, the government wants to find new ways to tax motorists to keep funding the insolvent scheme. [TopAuto]
End of an era for Coke: The Competition Tribunal has approved the merger of Coca-Cola HBC and Coca-Cola Beverages Africa (CCBA), with conditions, marking a new era for the company that was founded just 10 years ago in 2016. [BusinessTech]
Extravagance amid service failure: Nelson Mandela Bay Metro Mayor, Babalwa Lobishe, hosted an extravagant gala evening to deliver her State of the City Address, even as the city struggles with basic services. Lobishe delivered her State of the City Address at the gala evening on Thursday, 10 September 2026. [Newsday]
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