Economists, business leaders and trade unions in South Africa (SA) expect inflation to average a record low of 3.6% over the next five years, according to a survey conducted by the Bureau for Economic Research (BER).
The professional groups surveyed anticipate a slight decline in inflation expectations from 3.7% to 3.6% over the period. The outlook follows government’s decision to anchor inflation around a 3% target.
However, the survey shows that household inflation expectations have edged up slightly, rising from 5.3% to 5.4%.
Economist Nicolaas van der Wath from the BER says the survey results do not yet reflect the potential impact of rising oil prices linked to the conflict involving Iran.
“Households were surveyed before the attack of Israel and America on Iran, while most businesses and professional groups also responded before the invasion. Only about 14% answered after the attacks started, so the survey does not yet capture the expected oil and fuel price increases resulting from the shock,” he explains.
Van der Wath adds that oil prices only began to rise sometime after the attacks, meaning the survey results may change once the full impact of the situation filters through to inflation expectations.
–ChannelAfrica–
