Economists expect inflation to continue to drift downwards - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Economists expect inflation to continue to trend downwards after it decreased to 6.9% in January from 7.2% in December 2022.

However, inflationary pressures from food, non-alcoholic beverages, and transport are expected to remain elevated for longer.The South African Reserve Bank has an inflation target range of between 3% to 6%.

Standard Bank economist, Elna Moolman says, “We expect inflation to continue to drift downwards. Although there is growing concern about the potential inflation impact of rand weakness, and the additional costs faced by companies as a result of load shedding, and therefore, the increased use of diesel generators.”

“This data still reflects core inflation that is more subdued at 4.9%. In other words, if we strip out the impact of food, and energy prices, then inflation is still more subdued than the headline inflation rate at 6.9%,” adds Moolman.

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