This effect cannot be expected to abate just because the rand has recovered some lost ground. If the currency begins to trade in a stable band well above its old levels, stability will not necessarily moderate pass-through; rather, it could convince firms to price in the new normal level.
At the same time, our savings ratio has declined to about 16% of gross domestic product. Despite the important structural changes that the government has undertaken and the sound macroeconomic policy measures that have been applied, the economy still is not poised to obtain high sustainable economic growth.