For the past four years, the average annual rate of inflation has now stayed below the 10 per cent level, and last year inflation of 7.4 per cent (average for the twelve months) represented the lowest annual average rate of inflation in South Africa for the past 24 years.
Ominous signs developed over the past two years, however, with the rate of increase in bank credit extension escalating again to 18.7 per cent in June 1996.