Cape Town – Inflation is predicted to increase across the board in 2023/2024, according to a survey by the Bureau for Economic Research (BER) .
The average prediction of analysts, business people and trade unions for 2023 and 2024 increased by 0.2 percentage points relative to the fourth quarter of 2022. They forecast an average of 6.3% (6.1% previously) in 2023 and 5.8% (5.6%) in 2024.
However, there’s light at the end of the tunnel – on average, respondents expect inflation to subside from 5.8% in 2024 to 5.5% in 2025. Whereas analysts foresee inflation of 4.6% – the midpoint of the SARB’s inflation target range – in 2025, trade unionists expect 5.8% (just below the upper limit) and business people 6.2% (still above the upper limit).
Meanwhile, the average five-year forecast remained unchanged at 5.5%.
Households’ one-year-ahead inflation expectations jumped from 6.3% to 7.0%. Likewise, their 5-year expectations soared from 8.4% to 9.9%.
The survey respondents also lowered their average forecast of salary and wage increases for this year. They now expect an increase of 5.3%, compared to 5.9% before.
Follow African Insider on Facebook, Twitter and Instagram
For more African news, visit Africaninsider.com
Compiled by Junaid Benjamin