Price-setters still expect Sarb to miss inflation target

The beach in Durban in South Africa

Businesses and trade unions expect higher inflation in South Africa than do analysts, who typically expect the South African Reserve Bank (Sarb) to keep inflation within its target band, according to research published this week by the Sarb.

The paper: Monetary policy and heterogeneous inflation expectations in South Africa, by Alain Kabundi, Eric Schaling and Modeste Some, examines quarterly inflation expectations from the start of 2000 to Q1 2013.

They find that inflation expectations of price

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