SA won’t benefit from slowing global inflation as local challenges fuel CPI
There is recognition and growing evidence that the country’s ongoing energy challenges are affecting consumer prices, says Reserve Bank governor Lesetja Kganyago
SA Reserve Bank governor Lesetja Kganyago drew a dire picture of the SA economy on Wednesday, saying even as positive global developments — such as the reduction in global delivery lags and supply bottlenecks — contribute favourably to the inflation dynamics of some countries, they will not have a material impact on domestic inflation.
“In fact, it is expected that our own domestic infrastructural bottlenecks will continue to exert upside pressure on the inflation outlook,” Kganyago said. “There is [also] recognition and growing evidence that the country’s ongoing energy supply challenges are impacting on prices as well.”..
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