Stanlib warns of challenges in maintaining a 4.5% inflation rate

VAAL TRIANGLE - Stanlib Asset Management warns that the Reserve Bank may struggle to maintain a 4.5% inflation rate due to infrastructure backlogs and fiscal constraints raising essential service costs. Inflation has exceeded 4.5% for over three years, despite discussions of lowering the target to three-percent. Chief economist Kevin Lings notes that escalating costs for electricity, water, and healthcare will continue to drive inflation. There are growing concerns about state-set prices keeping inflation and interest rates high, impacting the central bank's ability to achieve a lower inflation rate.