Core inflation, which excludes energy and food, came to 4.3% in the euro area in August. The inflation forecasts for the next two years have likewise been raised to an average of 5.5% for 2023 and a still considerable 2.3% for 2024. The economic costs of such high inflation are severe – and they hit the most disadvantaged the hardest.
Emerging market economies have decelerated recently and this has spilled over and amongst others, impacted negatively on world trade volumes. Domestic economy South Africa continues to suffer from the aftermath of the tragic events that occurred recently. Economic activity has slowed down sharply, particularly in the mining sector.