South Africa’s Inflation Expectations Ease After 3% Target Announcement
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Inflation expectations in South Africa fell for 2026 and 2027 following the government’s adoption of a 3% inflation target. A fourth-quarter survey of businesses, trade unions, and analysts released Friday showed expected inflation of 3.8% for 2026 and 3.7% for 2027, down from 4.2% in both years. The survey, conducted November 17 to December 4 for the South African Reserve Bank, followed Finance Minister Enoch Godongwana’s November 12 announcement of the first target revision in 25 years.
Analysts projected the lowest readings at 3.5% for 2026 and 3.4% for 2027. Business respondents expect 3.9% and 4.0%, while trade union officials foresee 3.9% and 3.8%, respectively. The SARB’s next policy decision is January 29; it cut the key lending rate by 25 basis points on November 20.
