Survey shows consumer inflation to average at 4.3% this year

A survey conducted by the Bureau for Economic Research among analysts, trade unions and businesses indicates that they expect consumer inflation to average 4.3% this year.

This means that consumer inflation is expected to remain contained at the midpoint of the Reserve Bank’s target range over the next couple of years.

It’s a downward revision from a previous 4.5% forecast.

Respondents expect the economy to grow by 1.2% this year.

An Independent Economist, Elize Kruger says, “All social groups expect inflation to moderate even further in 2025 down from an expectation of 4,5 percent to 4,3 percent with analysts actually expecting 3,9 percent. This is good news as it indicates that inflation expectations remain within the target band quite comfortably. This is also an important factor that is incorporated in the Reserve Bank’s deliberations about monetary policy and this is indeed a positive development. We have seen inflation expectations moderating since early 2023 and that downward trend is to continue.”

Meanwhile, consumer inflation rose slightly in January. Despite this, inflation remains low.

Consumer inflation was up slightly in January: