After so many years in which SA could only envy the ultralow inflation rates of its rich country trading partners, it is a pleasure of sorts to see the US struggling with inflation that has spiked to 7%, its highest in more than 30 years, while our own inflation rate is still below 6%.
But only just. Latest data from Stats SA shows annual consumer price inflation jumped to 5.9% in December, up from 5.5% in November and well above the 5.7% the market had expected. The last time inflation was this high was in early 2017; the last time the monthly increase in prices in December was this high was in 2014. And while the dynamics driving SA’s inflation rate differ somewhat from those pushing up prices in advanced markets, the global environment is affecting the local landscape. ..