Inflation target regime debated in South Africa

SOUTH AFRICA - Economists briefing Parliament's finance committee endorsed the country's inflation targeting regime on Friday, but offered conflicting advice on how to improve it.

South Africa looks set to miss - both this year and next - the ambitious inflation targets it introduced in 2000, as prices soar in the wake of the rand's historic plunge late in 2001, and the knock-on effect on dollar-denominated food prices.

The central bank has raised interest rates by four percentage points so far

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