Ina Opperman
Business Journalist
4 minute read
19 Apr 2022
5:28 pm

More pain ahead – Reserve Bank warns Ukraine war could mean higher inflation

Ina Opperman

Can the war in Ukraine affect inflation in South Africa? The Reserve Bank has an answer.

Image: iStock

The Reserve Bank, in its latest Monetary Policy Review, has warned that higher domestic inflation could be on the horizon, if hostilities in the Ukraine war intensify or the supply of oil and gas become more constrained. Add to that the upward inflation expectations and sharply higher producer prices, and the inflation risk leans to the upside. Other factors that can place additional pressure on headline inflation are higher expected wage growth, a weaker Rand, and further increases in the price of global goods prices. According to the South African Reserve Bank (Sarb), South Africa’s inflation rate shifted markedly higher,...