Inflation driven by higher petrol prices

2016-11-03 06:01

Having taken a bullish view on South Africa’s inflation, MMI Holdings sees further downside risks to nominal growth.

In a statement on the economic outlook issued by MMI Holdings, economist Sanisha Packirisamy explained that Treasury anticipates an average headline inflation rate of 6.1% between 2016 and 2018. But this is 0.5% higher than MMI’s projected view of 5.6%.

“Given the downside risk, inflation between 2016 and 2018 will be around 5.6%,” she said. Subsequently, MMI expects relative currency strength to emerge in the next three years along with lower food inflation, particularly in 2017. Treasury, though, is of the view that inflation is set to remain outside government’s 3% to 6% target range at 6.4% for 2016.

This inflation is mainly driven by higher petrol and food prices. Over the medium term this may be about 6%, with upward pressure from electricity prices.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Partner Content
How data is changing investments

Technological disruption is rife in many spheres of business and given the quantity of data available, it’s no surprise that the way in which asset managers work is also changing fast.

Behind the sparkle

Alluring, beautiful and timeless - diamonds are some of the most sought after gems in the world and are a true testament of everlasting brilliance. Let us take you behind the sparkle to show you the history behind this coveted jewel.


Play with your pet when you're not at home

Many pets are alone at home during the week while their owners are at work. So what do these animals get up to while they’re home alone?



How to get rid of fleas
12 Cool cat facts
Chocolate can be fatal for dogs
Spider-man star's adorable relationship with his dog
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.