The inflationary momentum which had built up in the course of 2002, was moderated by a more conservative monetary policy stance and the recovery of the exchange value of the rand since about the middle of 2002. Inflationary pressures therefore waned in the final months of 2002 and the first half of 2003.
By January 2003 CPIX inflation has already declined to 10,0 per cent and receded to 6,3 per cent in August 2003. CPIX is expected to recede to within the target range in the immediate (before December 2003) future. The exchange rate of the rand has shown large swings over the past five years.