The elevated inflation trajectory is largely as a result of multiple supply-side shocks which are expected to feed into consumer prices over the forecast horizon. These include a sharp depreciation of the exchange rate, a spike in domestic maize prices, and above-inflation electricity tariff increases.
Again, there is a role for regulators and legislators to foster this opportunity – and as you all know, the last years have seen a huge amount of work in this regard. But what might have started as something led by policy makers has shifted into something now driven by real investor demand.