https://www.engineeringnews.co.za
Africa|Cutting|Energy|Logistics|Ports|Power|rail|Renewable Energy|Transnet
Africa|Cutting|Energy|Logistics|Ports|Power|rail|Renewable Energy|Transnet
africa|cutting|energy|logistics|ports|power|rail|renewable-energy|transnet

South African inflation seen averaging 5% in 2024 – Kganyago

Reserve Bank governor Lesetja Kganyago

Reserve Bank governor Lesetja Kganyago

Photo by Bloomberg

17th January 2024

By: Reuters

  

Font size: - +

South African central bank governor, Lesetja Kganyago, said on Wednesday that the disinflation process had begun and that he expected inflation to average 5% this year.

Speaking to the Reuters Global Markets Forum in Davos, Kganyago said inflation was still a concern as both global and domestic risks weighed on the outlook.

The South African Reserve Bank (SARB) targets inflation between 3% and 6%.

Despite still-rising food costs, annual inflation slowed for the first time in four months in November in South Africa - to 5.5% - thanks to cooling fuel prices.

However, Kganyago declined to indicate when the central bank would start cutting rates, saying that decisions would continue to be data-dependent.

"We would like to see that inflation has declined sustainably to the 4.5% mark, then the central bank can look whether it is still necessary to keep policy tight," Kganyago said.

The SARB will hold its first monetary policy committee meeting next week, wherein they will revise the forecasts for the year.

South Africa has suffered almost daily power cuts, some for up to ten hours a day, for more than a decade.

The SARB estimated that these power cuts had shaved off up to two percentage points from growth in 2023, but now think that investments from renewable energy should ease the pressure.

Logistics constraints on the ports and rail network run by troubled state-owned operator Transnet will also impact growth this year.

Kganyago said that, although it was difficult to quantify, it was clear that the inability of the rail network to move goods efficiently was feeding into inflation.

In addition, South Africa will hold its seventh democratic national election this year and pressure to increase spending could impact domestic inflation.

"There will be a lot of contestation in South Africa and that could spill into the labour market and that has implications for wage setting and domestic inflation," Kganyago said.

Edited by Reuters

Comments

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

SEW-EURODRIVE at Nampo 2024
SEW-EURODRIVE at Nampo 2024
21st May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.271 0.323s - 178pq - 4rq
Subscribe Now