What Is the Inflation Rate In South Africa 2022?

 What Is the Inflation Rate In South Africa 2022?
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Do note, however, that we are using data that comes from highly credible sources, including Statista, Reuters, Trading Economics, statistics agencies in various African countries, etc. Also, keep in mind, the rate of inflation is not a constant. However, it should be noted that according to the Statista forecast, inflation in this country is expected to fall to 41.8% before the end of 2022. The expected decrease is due to food and energy prices, particularly municipal tariffs due to rising electricity prices, higher internal food inflation, and higher fuel prices, which are expected to be key sources of inflationary pressures during 2022. With rising oil and fuel prices and electric costs, inflation rates are projected to rise below 5% levels until the latter part of 2022 at most.

March 2022 marked the eleventh straight month that annual inflation has been above the middle point of the SA Reserve Banks target range between 3% and 6%. South Africas annual inflation rate rose in March 2021 from 2.9% in February to 3.2%, which was in line with market expectations, and moved above the lower end of the South African Reserve Banks target range of 3 to 6 %. The annual inflation rate in the United States rose to 8.5% in March of 2022, its highest level in 40 years, up from 7.9% in February of 2022. Statistics South Africa (StatsSA) data released today showed that the annual inflation in consumption prices was 5.9 percent in March 2022, up from 5.7 percent recorded in February 2022.

More recently, however, overall increases in inflation were driven by increases in energy and food prices, particularly after the war started in Ukraine on 24 February 2022. The Central Bank of India recently revised its forecast for the inflation rate for fiscal year 2022-2023 to 5.7%, up from 5.3%, on account of a spike in commodity prices. The South African Reserve Bank now projects 5.8 percent inflation for this year, up from 4.9 percent seen in January, the projection being raised in large part because of higher food and fuel prices.

South Africas Reserve Bank is seeing 2.0% economic growth for 2022, better than the 1.7% forecast earlier because of higher commodity prices and stronger growth compared with the expected in 2021. Credit ratings agency Moodys said inflation in South Africa is expected to rise above the Central Banks 3-6 percent target range this year, then drop in 2023 and 2024, and that the Central Bank is likely to keep tightening its monetary policy following its March rate increase. Credit rating agency Moodys projects that South Africas Reserve Banks rate rises would continue, raising its repurchase rate 25 basis points on 24 March 2022, up 4.25 percent, marking 75 basis points of combined tightening since August 2021. Moodys said expectations were a major factor in its decision to shift the South African ratings outlook from a stable level to negative at the beginning of 2022.

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