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PWC’s Four Scenarios for SA inflation: Expects CPI to Average 5.2% in 2022

SOUTH AFRICA
  • PWC’s Four Scenarios for SA inflation:
  • PwC now expects inflation to average 5.2% this year under its baseline scenario from a mean of 4.6% in 2020.
  • “If under a hypothetical, but not impossible, stress scenario, food inflation climbs to 10% y-o-y (from 6.7% y-o-y in February) and transport inflation rises to 20% y-o-y (from 14.3% y-o-y in February) for a period of four to six months, the headline inflation number could be 1.5 percentage points higher than the baseline during H2 2022 and heading into 2023,” the firm said.
  • “This will likely result in inflation breaching the upper limit of the SARB’s target range over the short term.” This could see inflation climb as high as 6.7%.
  • At the other end of the scale, PwC has forecast an upside scenario of 4.9%.
  • https://businesstech.co.za/news/banking/573106/4-s...

MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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