Economist warns inflation could hit 5% amid spiralling fuel costs

South Africa could be heading for a sharp rise in inflation as fuel prices climb, with diesel potentially increasing by around R10 per litre and petrol by about R6 in May.

ALSO READ: Diesel shock: price could hit R40 a litre in May as oil fears surge 

Roodt said inflation is expected to rise from around 3% in February to roughly 3.3% in March, before jumping significantly higher in April. 

"In April, we're going to see the real shock...[inflation] coming in at about 4.5% or maybe 5%. I'm afraid inflation is likely to be above the target range of the Reserve Bank for the next couple of months."

The rise in pressure stems from shaky global oil markets and a worsening supply outlook. 

Diesel prices are affected more because they are less tightly regulated.

Roodt said that even if global conditions improve, the effects of the current fuel shock will take time to resolve. 

As a result, inflation is likely to remain high before returning to target levels.

"Even if things go back to where they were previously, we will still experience a significant slowdown in economic growth in South Africa."

To listen to Roodt in conversation with CapeTalk's John Maytham, use the audio player below: