South Africa’s inflation has been quite stable for the past years, levelling off between 3.2 and 6.9 percent, and is in fact expected to stabilize at around 4.5 percent in the future. South Africa is a mixed economy, generating most of its GDP through the services sector, especially tourism. However, the country struggles with unemployment and poverty.
Inflation who?
The inflation rate of a country is an important key factor to determine the country’s economic strength. It is calculated using the price increase of a defined product basket, containing goods and services on which the average consumer spends money throughout the year. They include, for example, expenses for groceries, clothes, rent, utilities, but also recreational activities, and raw materials (e.g. gas, oil), as well as federal fees and taxes. Some of these goods are more volatile than others – food prices, for example, are considered less reliable. The European Central Bank aims to keep inflation at around two percent in the long run.
What happened in 2016?
In 2016, South Africa’s inflation rate peaked at over 6.3 percent, and gross domestic product, and thus economic growth , took a hit, a sure indicator that something was affecting the country’s economic scaffolding: Low growth due to weak demand and an uncertain political future caused a crisis; then-President Jacob Zuma’s alleged mismanagement and unstable reign steeped in controversy and criminal charges even caused the economy’s outlook to be downgraded by ratings agencies. Zuma was relieved of his office in 2018 – ever since, inflation, GDP, and economic growth seem to have stabilized.
FAQs
Consumer price inflation in South Africa averaged 5.2% in the ten years to 2022, below the Sub-Saharan Africa regional average of 9.4%. The 2022 average figure was 6.9%.
What will be the inflation rate by 2028? ›
Projected annual inflation rate in the United States from 2010 to 2028
| Characteristic | Inflation rate |
|---|
| 2028* | 2.1% |
| 2027* | 2% |
| 2026* | 2% |
| 2025* | 2.1% |
9 more rowsJul 5, 2024
Consumer price inflation in South Africa averaged 5.2% in the ten years to 2022, below the Sub-Saharan Africa regional average of 9.4%. The 2022 average figure was 6.9%.
Which country in Africa has the highest inflation rate? ›
Top 10 African countries with the highest inflation figures in 2024
- Sudan. 157.9.
- Egypt. 35.8.
- Sierra Leone. 33.6.
- Nigeria. 31.6.
- Malawi. 27.3.
- Zimbabwe. 24.9.
- Burundi. 22.0.
- Ethiopia. 21.0.
South Africa's annual inflation rate eased to 5.1% in June 2024, edging lower from 5.2% in the previous two months, but remained above the central bank's target of 4.5%.
What is the CPI forecast for 2028? ›
In this forecast, it averages 7.5 per cent over 2023 and then falls more slowly, averaging 2.1 per cent between 2024 and 2028. The CPI is therefore 7.0 per cent higher by the start of 2028 than in March (top-right panel of Chart B).
What will 1 dollar be worth in 30 years? ›
Real growth rates
| One time saving $1 (taxable account) | Every year saving $1 (taxable account) |
|---|
| After # years | Nominal value | Nominal value |
|---|
| 30 | 7.07 | 93.87 |
| 35 | 10.04 | 137.72 |
| 40 | 14.31 | 200.13 |
7 more rowsWith few significant changes to the forecasts for underlying components, headline inflation for 2024 is expected to ease to 5.0%, to 4.6% in 2025, and to 4.5% in 2026. surveyed services within the CPI basket. Core goods inflation is expected to be 4.5% in 2025, and 4.4% in 2026. in 5.4% in 2026.
Which country has the highest inflation rate? ›
Top 10 Countries with the Highest Inflation Rates (Trading Economics Jan 2022) With an inflation rate that has soared above one million percent in recent years, Venezuela has the highest inflation rate in the world.
Which country in Africa has crazy inflation? ›
Zimbabwe ranks number 1 on this list.
One of the most urgent issues confronting the region is the need to tackle decade-high levels of inflation—which are devastating incomes and food security—while also supporting growth. While there are big differences between countries, the median of inflation rates in the region increased to almost 9 percent in August.
Which country has the lowest inflation rate? ›
Inflation rate (consumer prices)
| Rank | Country | % |
|---|
| 1 | Andorra | -0.9 |
| 2 | American Samoa | -0.5 |
| 3 | Liechtenstein | -0.4 |
| 4 | Faroe Islands | -0.3 |
115 more rowsBuying power of $1,000,000 in 2030
| Year | Dollar Value | Inflation Rate |
|---|
| 2027 | $1,173,075.90 | 3.00% |
| 2028 | $1,208,268.18 | 3.00% |
| 2029 | $1,244,516.22 | 3.00% |
| 2030 | $1,281,851.71 | 3.00% |
5 more rowsHeadline consumer price inflation for this year is now projected at 4.9%, compared to 5.1% at the previous meeting. Over the next few quarters, headline is expected to dip below the 4.5% midpoint, mainly because of fuel and food prices. This outlook is supported by the stronger rand.
Is South Africa's economy growing? ›
Over the next three years, South Africa's economy is forecast to grow at an average of 1.6 per cent, a moderate improvement on the 1.4 per cent average expected at the time of the 2023 MTBPS.
How bad will inflation be in 2030? ›
Average annual inflation rate: 2.33%3
Food and drinks may be about 26% more expensive by 2030. That means a trip to the grocery store that costs you $250 now could set you back more than $314.
What will inflation be in 2029? ›
Buying power of $850 in 2029
For example, if you started with $850, you would need to end with $3,757.07 in order to "adjust" for inflation (sometimes refered to as "beating inflation"). Future inflation is estimated at 3.00%.
What is the US 5 years inflation rate? ›
Basic Info. 5-Year, 5-Year Forward Inflation Expectation Rate is at 2.35%, compared to 2.38% the previous market day and 2.48% last year. This is higher than the long term average of 2.25%.
What will inflation be in 2026? ›
Buying power of $10,000 in 2026
| Year | Dollar Value | Inflation Rate |
|---|
| 2023 | $11,244.86 | 4.12% |
| 2024 | $11,594.45 | 3.11% |
| 2025 | $11,942.28 | 3.00% |
| 2026 | $12,300.55 | 3.00% |
2 more rows