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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.

Inflation Updates


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... 


A generic image of a farmer carrying a sack
Conflict in Middle East could cost Africa 0.2 percentage points in economic growth in 2026
17th April 2026 By: Lumkile Nkomfe

A joint policy document presented by continental body the African Union (AU) Commission, multilateral development finance organisation the African Development Bank Group (AfDB), regional... 


Reserve Bank Governor Lesetja Kganyago
Kganyago says war inflation risks are playing out
17th April 2026 By: Bloomberg

Reserve Bank Governor Lesetja Kganyago said the Iran war’s impact on oil prices has validated wariness over inflation, without giving a clear signal on what that means for interest rates. “You are... 


Reserve Bank Governor Lesetja Kganyago
Kganyago cites Zulu War to signal preemptive inflation move
16th April 2026 By: Bloomberg

South Africa’s central bank governor referenced an 1879 battle in the Anglo-Zulu war in his views on how to tackle the coming wave on inflation from the Iran war shocks, implying a preference to... 


Diesel fuel costs, weaker rand to place pressure on inflation, export-competitiveness
14th April 2026 By: Schalk Burger

Financial brokerage and asset management firm EBC Financial Group (EBC) warns that the R3-a-litre levy cut will provide relief only for a month, while Brent-linked diesel costs and a weaker South... 


IMF signage
IMF cuts growth outlook, warns of potential global recession if Iran war worsens
14th April 2026 By: Reuters

 The International Monetary Fund cut its growth outlook on Tuesday due to Iran war-driven energy price spikes and supply disruptions and warned that the global economy would teeter on the brink of... 


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