Last week’s domestic data confirmed that inflation, although rebounding,
remains low. Headline consumer price inflation came in at +2.9% y/y, while PPI
was again deflationary at -0.1% y/y in November.
Current inflation remained below the SARB’s 3%-6% target band, and this soft
inflation environment offers the SARB (and National Treasury) a window of
opportunity to consider lowering the inflation target without implementing any
drastic changes to monetary policy.
In other data releases, the recent lo