South Africa Expects Inflation to Hit Target Range
South Africa’s inflation will fall to the target range of 3% to 6% in the second quarter or third quarter, at the latest, which would be earlier than anticipated, Reuters reported Tuesday.
In an event in Johannesburg, South African Reserve Bank Governor Lesetja Kganyago noted a steady decline in the country’s inflation, with the rate down to 6.3% in May 2023 from 6.8% in April 2023. South Africa’s inflation rate reached a peak of 7.8% in July 2022.
The reserve bank delivered a higher-than-expected 50-basis-point rate hike in May amid stubborn inflation. The central bank will make its next monetary policy decision on July 20.
Power Outages Likely Impacted 2022 Economic Growth
Elsewhere, the South African Reserve Bank chief said the country’s energy crisis may have lowered its economic growth rate by up to 3.2 percentage points in 2022, Bloomberg News reported Tuesday.
The ongoing load-shedding issue is likely to suppress economic output until 2024, the central bank estimated, adding that it anticipates rolling blackouts to continue in 2023 and early 2024. #South Africa Expects Inflation to Hit Target Range