/ 11 September 2000

SA ‘ON TRACK TO MEET INFLATION TARGETS’

SOUTH African Finance Minister Trevor Manuel says the country is broadly on track to meet its inflation target. ”Except for the rocketing fuel price … we are on track to meet the inflation target of 2002,” he said. The country’s central bank has set an inflation target of between three and six percent by the end of 2002. The bank’s measure – CPIX, which strips away volatile mortgage rates – was eight percent in July on a year-on-year basis. Last week, Reserve Bank Governor Tito Mboweni said rising oil prices could pose a threat to the inflation target, though he also said CPIX may have peaked. – Reuters