Inflation is a measure of how much the general level of prices for goods and services has risen over a period. Inflation targets are set by governments to keep the economy healthy, in particular by avoiding too much inflation.
There are two types of inflation targets:
1) Achieving
2) Maintaining
The South African Reserve Bank has an inflation target rate of 3%.
Why did South Africa move to inflation targeting?
The South African Reserve Bank (SARB) introduced inflation targeting in 1999. This is a monetary policy that is used to control inflation by tweaking interest rates and the money supply.
The SARB has been using inflation targeting since 1999, which is a monetary policy that is used to control inflation by tweaking interest rates and the money supply. Inflation targets are set by the SARB and they can change based on economic conditions.
The SARB sets inflation targets and they can change based on economic conditions.
What are the key inflationary drivers in South Africa?
Inflation is the general increase in the price of goods and services over time. The inflation rate is the percentage change in a country’s average level of prices over time. Inflation rates are typically calculated as an annualized percentage, meaning that they represent how much prices have changed since last year.
In South Africa, there are several key drivers of inflation, including:
-The depreciation of the rand against other major currencies;
-An increase in global oil prices;
-A weaker rand which has seen it trade at levels not seen since 2008;
-Higher electricity tariffs;
-A weaker agricultural sector which has led to higher food prices and fewer exports.
