Domestic fuel prices have been rising, albeit moderately, and there is a risk that we could see further increases in the coming months, largely as a result of exchange rate volatility. This shows that the domestic inflation outlook is still susceptible to global factors, exacerbated by domestic conditions, of course.
In South Africa, food price inflation has yet to peak, despite the decelerating trend observed in global agricultural commodities. Domestic meat prices are still accelerating, reflective of lingering supply constraints in the beef market following last year's outbreak of foot and mouth disease.