The Reserve Bank predicts a low fuel price inflation in 2024

VAAL TRIANGLE - According to the South African Reserve Bank, fuel price inflation is expected to be low, averaging below 1% this year. There is, however, a slight upward revision for food price inflation to 5.7%, but it remains broadly unchanged over the forecast period. In his media briefing, governor Lesetja Kganyago said the Monetary Policy Committee has recommended additional means of strengthening economic conditions. He says these include achieving a prudent public debt level, increasing the supply of energy, and maintaining low administered price inflation.

Earlier, the Reserve Bank’s Monetary Policy Committee announced the repo rate will remain unchanged at 8.25%, aligning with expectations in its first meeting of the year. The prime lending rate thus also remains unchanged at 11.75%. The unanimous decision comes amid a stable nine-month benchmark rate. Briefing the media, governor Lesetja Kganyago warned of uncertainties, geopolitical tensions and climate change impacting supply chains. He says this is despite last month’s consumer price inflation easing to 5.1%, below expectations.

PHOTO: (Supplied)