JOHANNESBURG - South Africa’s inflation outlook is becoming more challenging for the Reserve Bank, with expectations trending higher.
New data shows two-year inflation expectations have risen to 3.9 percent in the second quarter, up from 3.6 percent previously.
The increase comes as actual inflation accelerated to 4.5 percent between survey periods, driven in part by record fuel prices at the time.
The South African Reserve Bank has warned that rising expectations could fuel broader price pressures, saying policymakers may need to act to keep inflation anchored around the 3 percent target.
While global oil prices have since eased following a ceasefire between the US and Iran, offering some relief, the central bank remains on alert.
The SARB is set to announce its next interest rate decision on 23 July.