These forecasts are somewhat lower than those of some other emerging market and developing countries. 5. South Africa’s monetary policy response  Inflation in a number of emerging market countries has been rising steadily over the past year, driven by the rise in global food and commodity prices.
The large share of food and energy in the CPI baskets of many emerging market countries is a major factor behind rising inflation. In addition, in many cases output gaps have closed, resulting in a tightening of monetary policy in many emerging market economies.