ECONOMIC AND MARKET OVERVIEW
JUNE IN REVIEW
In an interview with Business Day, Reserve Bank governor Lesetja Kganyago has suggested the central bank’s almost two year long fight against inflation is paying off, saying recent data showed clear signs of the reversal of the inflationary trend. SA’s annual inflation rate fell for the second month in May to 6.3% the lowest level since April 2022, thanks to slower food and transport prices. It had hit a 13 year high of 7.8% in July 2022, driven by a combination of factors such as high fuel prices, supply chain disruptions, a weak exchange rate, power outages, an accommodative macroeconomic policy and global inflation pressures. STANLIB reports that the inflation rate is expected to drop back into the target range (3% to 6%) in the second half of the year, despite the pending large increase in the electricity price and rand weakness in May 2023.
A quartet of African leaders, led by South African President Cyril Ramaphosa, visited Russia’s Vladimir Putin in Moscow as part of efforts to resolve the war between the two nations. According to Al Jazeera this so called “peace mission” puzzled many observers. Aside from numerous unexpected scenarios, the leaders and some of their aides eventually made it to the Kremlin. They put forward a 10 point plan that included sending prisoners of war and children back to their countries of origin and unimpeded grain exports through the Black Sea. As it stands the effort is yet to yield any results.
