It says that domestic food price inflation has risen from about 1,1% year-on-year in July last year to 7,5% currently. Electricity contributed three percentage points to the total inflation rate as a result of higher tariffs imposed this year.
Nedbank economist Carmen Altenkirch says that a slowdown in global growth might ease commodity prices and reduce the sources of pressure for domestic inflation.
She warns, though, that this could have a correspondingly negative impact on job creation levels while weaker household spending may limit the pricing power of retailers.
