South Africa’s electricity, water price hikes pose risk to inflation outlook- central bank

PUBLISHED: Wed, 14 Apr 2021 14:30:00 GMT

JOHANNESBURG, April 14 (Reuters) – Above-inflation increases to South Africa’s electricity and water prices pose a risk to the consumer inflation outlook and could trigger a rise in lending rates, the central bank said on Wednesday.

“These risks, should they materialise, could drive headline above the 4.5% target midpoint and possibly dislodge inflation expectations away from the midpoint,” the bank said in its bi-annual Monetary Policy Review.

The bank targets consumer price inflation of between 3%-6%. (Reporting by Mfuneko Toyana; Editing by Olivia Kumwenda-Mtambo)

(c) Copyright Thomson Reuters 2021. Click For Restrictions –

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.