The reason why these prices remain high even with lower cost structures suggests that there is a lack of adequate levels of competition in some of these industries. If however, we can dream; and lower fuel prices are passed on to consumers and lower prices are reflected in lower nominal salary settlements, then inflation could be structurally lower than it has been.
This would give the Monetary Policy Committee serious food for thought and in general would imply lower rates or at least a more gradual normalisation of interest rates. It could be a win-win-win scenario. If only we could dream! The South African economy is in a difficult space. We are negatively impacted by global developments, especially in Europe and in China.