It is very difficult to disentangle the impact of the various types of shocks when they are happening simultaneously, as is currently the case in South Africa; it is also difficult to know whether these shocks are once-off or likely to persist for some time.
It is easy enough to ‘look through’ a once-off shock, but when 2  BIS central bankers’ speeches  the shock is of a protracted or continuous nature, it is a lot more difficult to manage. Furthermore, it is not straightforward assessing the extent to which inflation expectations are anchored, an issue that I will return to in a while.