The inflation forecast has been somewhat erratic, impacted by the combination of a weaker exchange rate on the one, hand and falling oil prices on the other. However, the rand exchange rate remains the one of the biggest upside risks to the inflation outlook.
The ZAR has fluctuated in a range of between R11.30 and just over R14,00 against the US dollar since the beginning of the year, depreciating to a historic low of R14.16 against the US dollar, but more recently we have seen some correction. On a year-to-date basis, the rand is almost 12 per cent weaker against the US dollar.