By Thebe Mabanga
Just as South Africans thought inflation was under control, the beast has reared its head again as Consumer Price Index (CPI) rose from 3 % to 3,5 % from a year ago in July to reach the highest level in 10 months.
This follows last month’s Monetary Policy Commitee (MPC) meeting, where Reserve Bank Governor Lesetja Kganyago suggested that the bank would use the lower end of the inflation target of 3% to target inflation.
A year-and-a-half ago, the Bank opted to use the mid point of the target range, or 4,5%, to target inflation. The latest move to target 3% prompted Finance Minister Enoch Godongwana to assert the National Treasury’s role as custodians of the inflation targeting policy, with the Reserve Bank as implementers.
Releasing inflation figures on Wednesday, Statistic South Africa stated that household’s food budgets were under pressure.
“Annual inflation for food & non-alcoholic
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