'clouds could darken'

South Africa: Stubborn inflation puts central bank in quandary

By Ray Mwareya

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Posted on May 2, 2023 11:39

© A woman carries a dish with vegetables on her head as she sells in the streets of Soweto, South Africa, July 7, 2021. Picture taken July 7, 2021. REUTERS — A woman carries a dish with vegetables on her head as she sells in the streets of Soweto, South Africa, July 7, 2021. Picture taken July 7, 2021. REUTERS

Inflation has accelerated in South Africa above market expectations, which will likely urge the central bank – already grappling with mounting debt – to opt for more interest rate hikes.

Inflation rose in Africa’s most industrialised nation for the second month on the trot in March to 7.1% year on year, exceeding a projection of 6.9%. The central bank still upholds its 2023 overall inflation target band of 3% -6%.

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