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Inflation & Prices

Inflation Expectations Climb Before S. Africa Rate Decision

  • Inflation likely to average 6.1% in 2023, BER survey shows
  • Central bank seen raising benchmark interest rate this month
Customers at a supermarket in Cape Town.

Customers at a supermarket in Cape Town.

Photographer: Dwayne Senior/Bloomberg
Updated on

South African inflation expectations rose for the next two years, affirming predictions that the central bank will extend its most aggressive rate-hiking cycle in at least two decades.

Average inflation expectations for the year increased to 6.1% in the fourth quarter from 5.9% previously, according to a survey conducted by the Stellenbosch-based Bureau for Economic Research. The rate of price growth for 2024 is now seen climbing to 5.6% from 5.3%, according to participants in the poll of analysts, business people, labor unions and households conducted.