South Africa needs to shield itself against capital outflows by boosting its foreign currency reserves, says Reserve Bank governor Gill Marcus.
The rally of the rand in recent days will likely continue to lose steam as the market looks out for a decision to cut monthly bond purchases.
The rand has slumped to a six-week low and bond yields soared to the highest in 16 months.
SA's latest inflation figures, manufacturing updates from China and housing data from the US are some of this week's big items on the data diary.
SA inflation figures, indicators of growth in Europe and China, US corporate earnings reports and elections in Japan will make for a busy week.
Labour unrest that has taken new and more challenging forms is compounding the effects of slumping commodity prices.
Retail-sales growth has slowed in March from a year earlier as inflation has remained close to the top of the central bank's target.
New weightings show that oil and electricity will continue to dictate the inflation trajectory.
Zimbabwe's annual inflation rate eased to 2.91% in December, down from 2.99% the previous month due to reduced food and clothing costs.
A data deluge in the US, growth figures for China and Germany, and inflation data from the eurozone are the highlights on the economic data calendar.
A higher gold price is unlikely to offset the effects of cautious American consumers and a weaker rand.
New economic research by ETM Analytics has put South Africa in some dangerous company.
Angola is on track to reach its target of slowing consumer inflation to 10% from 11.38% in 2011 thanks to monetary policy focused on price stability.
Consumer inflation has slowed to within the reserve bank's 3% to 6% target range in May, raising expectations of an interest-rate cut this year.
Indonesia's parliament voted on Saturday to give the government authority to raise subsidised fuel prices under certain conditions.
Inflation in the eurozone has slowed in March but not by as much as expected due to rising oil prices and the European Central Bank's reviving growth.
Tanzania expects its inflation rate to fall to single digits by June from 19.2% it was at in November, also hoping for 7% economic growth.
The Producer Price Index lowers the trajectory for inflation expectations on the production side and early next year could see single digits.
Inflation figures came in higher than expected as businesses -- and consumers -- face a potential spate of government-controlled price increases.
Increases in inflation and retail sales figures point to a steadily recovering consumer, which bodes well for the South African economy.