Eskom’s tariff snip too late – economist

Business Report 13 March 2012.

Eskom’s decision to accept a 16 percent tariff increase for the 2012/13 year, rather than the previously agreed 25.9 percent, has come too late to do more than limit the damage to inflation expectations, according to Brait economist Colen Garrow. Wage demands and price increases are based on expectations that generally become self-fulfilling…