Uncertainty whether SA inflation will fall to 4.5%

JOHANNESBURG - There is still uncertainty about whether inflation will move to the South African Reserve Bank's mid-point target of 4.5% in 2024.

The SARB released their latest monetary policy review for April on Tuesday. 

Headline inflation is forecasted to moderate during the year, averaging 5.1%, as food and fuel price inflation eases. 

But, the return to the mid-point is only expected in the last quarter of 2025. 

The SARB is expecting South Africa's output growth to remain low, due to inadequate energy supply, logistical challenges as well as low confidence among businesses and households. 

They are however expecting growth to increase, but at a slow pace, as electricity supply improves. 

They are projecting growth to improve to 1.2% this year.