However, this benign environment is not expected to continue as the expectation is that the most recent reading was the low point in the current inflation cycle due to a combination of base effects and tax increases (including the VAT4 and fuel levy increases) is expected to confirm that the most recent reading was the low point of the current inflation cycle.
The SARB’s most recent forecast was for inflation to average 4.9% this year, and 5.2% and 5.1% in the next two years respectively. So while headline inflation is currently well below the midpoint of the target range, the longer-term outlook is slightly above 5%. 4 value-added tax  Page 6 of 10  There are admittedly a number of other positive developments.