Finally, in the consolidation process, South Africa succeeded in absorbing the unavoidable increase in inflation in the aftermath of the depreciation of last year. As was expected, the rate of increase in consumer prices accelerated from 5.5 per cent in April 1996 to 9.9 per cent in April 1997 but then declined again to 8 per cent in September 1997.
In the third quarter of 1997, inflation was indeed running at an annualised rate of 6.6 per cent, back on track again towards the medium-term objective of bringing the rate of inflation in South Africa more in line with the average rate of inflation in the economies of our major international trading partners and competitors.