4  BIS central bankers’ speeches  In South Africa recent supply shocks have placed upward pressure on inflation, but there is no evidence this far to suggest that these pressures are becoming entrenched and that inflation expectations are becoming less anchored.
Nonetheless, it is important to monitor these dynamics to ensure that second round effects do not take hold, that there any pass through to other prices is carefully assessed, and that inflation expectations do not diverge significantly from the recent past.