By Charles Molele and Thebe Mabanga
Finance Minister Enoch Godongwana on Wednesday announced a new inflation target of 3%, with a 1 percentage point tolerance band.
The decision, made in agreement with South African Reserve Bank (SARB) Governor Lesetja Kganyago, follows consultations with President Cyril Ramaphosa and Cabinet.
It was confirmed alongside the tabling of the 2025 Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday.
“Today I announce a new inflation target for South Africa of 3 per cent with a 1 percentage point tolerance band,” Godongwana told lawmakers in Cape Town.
“This decision follows agreement between the Governor of the South African Reserve Bank and my consultations with the President and Cabinet. The 1 percentage point band provides flexibility to accommodate any unexpected inflationary shocks. This is in line with South Africa’s approach to inflation targeting, which has always been a flexible one, looking beyond short-run deviations in
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