Ina Opperman
Business Journalist
4 minute read
18 May 2022
4:36 pm

No runaway inflation just yet, but repo rate likely to increase

Ina Opperman

The announcement that the inflation rate remained unchanged will, however, not save consumers from a hefty repo rate increase.

Image: iStock

Inflation hasn't run away from us yet, but the Statistics SA announcement on Wednesday that the inflation rate stayed unchanged at 5,9% in April compared to March will increase the repo rate, according to economists. Economic research group Oxford Economics Africa says although price pressures increased in recent months, high inflation has not been a major headache for South African policymakers when compared to advanced economies. The group expects inflation to average 5.9% this year compared to 4.5% in 2021. “Although headline inflation has stayed above the midpoint of the South African Reserve Bank's (Sarb) inflation target band of 3%-6%...