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South African inflation expectations stabilise in third quarter

South African inflation expectations stabilised in the third quarter, a survey showed on Wednesday, 16 September 2026 after a steep rise in the previous quarter because of the oil-price shock triggered by the Iran war.
Source: Supplied.
Source: Supplied.

  • The quarterly survey is commissioned by the central bank and guides its thinking on the appropriate level of interest rates.
  • The average forecast of analysts, business people and trade-union officials was for headline consumer inflation of 4.4% this year, unchanged from the second-quarter survey.
  • The average forecasts for 2027 and 2028 declined to 4.0% and 3.8%, respectively, from 4.2% and 3.9%. Those forecasts are important as the central bank says interest-rate changes affect the economy with a lag of about 12 to 24 months.
  • Inflation stood at 4.3% year on year in July, the latest month for which price data is available.
  • The central bank targets inflation of 3% with a 1-percentage-point tolerance band either side of that.
  • The bank surprised investors and economists by keeping its main lending rate unchanged in July after its first rate hike in three years in May.
  • Its next rate announcement is scheduled for Wednesday, 23 September 2026.

Source: Reuters

Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day.

Go to: https://www.reuters.com/
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