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Electricity, water price hikes pose risk to inflation outlook – central bank

15th April 2021

By: Reuters

  

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Above-inflation increases to South Africa's electricity and water prices pose a risk to the consumer inflation outlook and could trigger a rise in lending rates, the central bank said on Wednesday.

"These risks, should they materialise, could drive headline above the 4.5% target midpoint and possibly dislodge inflation expectations away from the midpoint," the bank said in its bi-annual Monetary Policy Review.

The bank targets consumer price inflation of between 3% and 6%.

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Edited by Reuters

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