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Inflation

Inflation is the rate at which the general level of prices for goods and services rises over time, eroding purchasing power. It is typically measured as an annual percentage change in a consumer price index or similar basket of goods and services. Central banks and statistical agencies track inflation closely as a key indicator of economic health and monetary policy effectiveness. Moderate inflation is generally considered normal in growing economies, while high or hyperinflation can destabilise markets, reduce consumer confidence and undermine savings. Deflation, or sustained price declines, can also signal economic distress. Common drivers of inflation include increased demand, rising production costs, supply-chain disruptions and expansionary monetary policy. In commodity-dependent economies, fuel and food price shocks often trigger inflationary pressures that ripple through transport, manufacturing and household budgets. Governments and central banks use interest-rate adjustments, reserve requirements and fiscal measures to manage inflation within target ranges. Inflation expectations influence wage negotiations, investment decisions and currency valuations, making the metric central to business planning and policy debate. Historical episodes of runaway inflation have prompted currency reforms and structural adjustment programmes across both developed and emerging markets.

Latest Articles in 60 Seconds

Rand steadies as South Africa awaits June inflation data

The rand traded near 16.46-16.57 against the dollar in mid-July, weakening for a second consecutive week as Middle East tensions dampened risk appetite ahead of June consumer inflation data and the South African Reserve Bank's rate decision. Headline inflation rose less than expected to 4.5% in May from 4.0% in April, and PSG Financial Services chief economist Johann Els expects June inflation to edge up to 4.7%, with the bank likely to hold rates though renewed Middle East conflict and higher oil prices keep a 25-basis-point hike on the table.

Nigeria to publish poverty and income scorecard amid inflation concerns

Nigeria's government plans to track poverty, real incomes and inequality to demonstrate that President Bola Tinubu's reforms are improving living standards, finance minister Taiwo Oyedele said on July 16, 2026. The International Monetary Fund noted in June that while reforms have boosted investor confidence, 63% of Nigeria's population remains in poverty after subsidy removal and naira liberalisation drove up inflation and living costs.

IMF lifts global inflation forecast amid Middle East war

The IMF raised its 2026 global inflation forecast by 0.3 percentage points to 4.7%, easing to 3.9% in 2027, citing energy prices 25% higher than before the Middle East war began on February 28, and warning of further commodity price volatility.

Inflation Updates


Reserve Bank Governor Lesetja Kganyago
South Africa unexpectedly holds rates as it flags growth risks
23rd July 2026 By: Bloomberg

The South African Reserve Bank defied expectations and held interest rates steady to support economic growth after revising its inflation forecasts lower, while warning that the renewed conflict in... 


Groceries
South Africa inflation jumps more than expected in June
22nd July 2026 By: Reuters

South African inflation picked up more sharply than expected in June, bolstering expectations that the central bank will deliver a second consecutive interest rate hike on Thursday. Annual headline... 


An image of the Johannesburg skyline
Monetary policy, Joburg financial constraints weigh on South Africa’s outlook – BMI
21st July 2026 By: Tasneem Bulbulia

Given the recent uptick in the US-Iran military exchange and BMI’s shift to a ‘messy negotiation scenario’, the research unit will be reviewing its forecasts over the coming week, but does not... 


Trade conditions remained tight in June – Sacci
21st July 2026 By: Schalk Burger

The crude oil price returning to about $72/bl at the end of June had positive effects on business and particularly on general trade conditions for the month and improved trade expectations, reports... 


Zambia President Hakainde Hichilema
Zambia election will put Hichilema's economic record to the test
9th July 2026 By: Reuters

Zambia is gearing up for an August election in which President Hakainde Hichilema is favoured to win a second term but may face a strong challenge from opposition leader Brian Mundubile. The vote... 


Containers being transported by ship
IMF lowers 2026 global growth forecast to 3%, sees rebound in 2027
9th July 2026 By: Reuters

The International Monetary Fund on Wednesday inched its 2026 global growth forecast lower again to a sluggish 3.0%, warning of ongoing risks linked to the war in the Middle East, trade... 


An image of NWU School of Economics Professor Waldo Krugell and NWU Business School Professor Raymond Parsons commemorate the tenth anniversary of the university's Policy Uncertainty Index
Uncertainty persists as NWU’s Policy Uncertainty Index marks ten-year anniversary
2nd July 2026 By: Tasneem Bulbulia

As the North West University (NWU) marks the tenth anniversary of its Policy Uncertainty Index (PUI), the data shows that a decade on, uncertainty is increasing and much of the frustrations of the... 


Reserve Bank Governor Lesetja Kganyago
Kganyago signals South Africa could hike rates again this month
1st July 2026 By: Bloomberg

South African Reserve Bank Governor Lesetja Kganyago said inflation expectations have risen above the central bank’s 3% target, justifying the May interest-rate increase and signalling further... 


JHB skyline
South African inflation rises less than expected in May
17th June 2026 By: Reuters

South African inflation rose by less than expected in May, which analysts said reduced the likelihood of another central bank interest rate hike next month. Headline consumer inflation quickened to... 


Rand currency
Traders cut South Africa rate-hike bets after Iran peace deal
15th June 2026 By: Bloomberg

Traders have scaled back bets on additional South African interest-rate hikes after a US-Iran peace deal sent oil prices tumbling, potentially reducing inflationary pressures. Forward-rate... 


Reserve Bank governor Lesetja Kganyago
Kganyago signals resolve to curb inflation after rate hike​
2nd June 2026 By: Reuters

South Africa's central bank governor Lesetja Kganyago said on Tuesday that the bank would bring inflation back to its 3% target, defending last week's rate hike as necessary to prevent second-round... 


An image of BLSA CEO Busi Mavuso
South Africa must continue to pursue reform programme to maintain stability – BLSA
1st June 2026 By: Tasneem Bulbulia

The decision by the South African Reserve Bank (SARB) last week to hike interest rates by 25 basis points in response to rising global inflation is the correct call, business organisation Business... 


Reserve Bank Governor Lesetja Kganyago
South African central bank raises key rate by 25 basis points
28th May 2026 By: Reuters

South Africa's central bank raised its key interest rate by 25 basis points to 7% on Thursday, saying the decision was aimed at managing risks and ensuring that inflation returns to target. The... 


Reserve Bank Governor Lesetja Kganyago
South Africa poised for first rate hike since 2023 on Iran war
28th May 2026 By: Bloomberg

South Africa’s central bank is set to raise borrowing costs for the first time in three years as policymakers seek to combat inflationary pressures stemming from the Iran war, including sharply... 


Trade conditions deteriorate as fuel prices take their toll – Sacci
Trade conditions deteriorate as fuel prices take their toll – Sacci
21st May 2026 By: Sabrina Jardim

As global trade conditions are factoring in the effect of the war in the Middle East, especially as it impacts international crude oil prices, these exogenous developments not only affect crude oil... 


Consumer
South Africa consumer inflation quickens to 4.0% y/y in April
20th May 2026 By: Reuters

South African inflation accelerated sharply in April, increasing the likelihood that the central bank will hike interest rates when it meets to assess its monetary policy stance next week. Headline... 


Bank notes
South African rand steady before local inflation reading
20th May 2026 By: Reuters

The South African rand was steady in early trade on Wednesday, ahead of the release of inflation data which is expected to reflect pressures from the war in the Middle East. At 0619 GMT the rand... 


People buying vegetables at a market
Kganyago wary of CPI yet guarded on rate outlook
5th May 2026 By: Bloomberg

South Africa’s central bank Governor Lesetja Kganyago said policymakers will “very carefully” monitor incoming data to guide their next rate decision, as the Iran war clouds the inflation outlook... 


Consumer
South African inflation picks up to 3.1% y/y in March, as expected
22nd April 2026 By: Reuters

South Africa's headline consumer inflation edged up as expected last month, but analysts said the increase would be far larger in April when fuel price hikes triggered by the US-Israeli war on Iran... 


South Africans adjusting behaviour owing to inflation of everyday goods prices – TransUnion
21st April 2026 By: Schalk Burger

South African consumers are adjusting their financial behaviour in response to rising cost pressures, with credit bureau TransUnion's 'First Quarter 2026 Consumer Pulse Study' showing meaningful... 


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