Kganyago Cites Inflation Risks in South Africa
South African central bank head Lesetja Kganyago warns that rising energy and food costs pose ongoing upside risks to inflation. Consumer prices are expected to return to the three percent target by 2028 amid geopolitical uncertainty.
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South Africa faces persistent upside risks to inflation from rising Brent Crude Oil and food costs, with consumer prices returning to the 3% target only in 2028. Central bank governor Lesetja Kganyago said inflation will average 4.4% this year before easing. The comments signal that monetary policy may need to remain tight following last month's rate increase.
