How long does it take to bring inflation down?
The expectation of lower inflation is a central theme in the economic outlook for 2023, as interest rates have been raised sharply worldwide.
Inflation in the US – the world’s bellwether economy – peaked at 8.9% in June 2022 and was already down to 5.0% by March 2023. A different paradigm prevails in South Africa though, as inflation remains elevated at 7.1% in March 2023 after peaking at 7.8% in July 2022.
Simeka’s Marcus Rautenbach comments on the nature of South Africa’s current experience of inflation.