{"id":217443,"date":"2022-02-23T15:15:54","date_gmt":"2022-02-23T13:15:54","guid":{"rendered":"https:\/\/www.myza.co.za\/inflation-projected-to-reach-4-8-in-2022\/"},"modified":"2022-02-23T15:15:54","modified_gmt":"2022-02-23T13:15:54","slug":"inflation-projected-to-reach-4-8-in-2022","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/inflation-projected-to-reach-4-8-in-2022\/","title":{"rendered":"Inflation projected to reach 4.8% in 2022"},"content":{"rendered":"
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Headline inflation is projected at 4.8% in 2022 and 4.4% in 2023, National Treasury said on Wednesday. <\/p>\n

This is attributed to food and energy prices, especially municipal rates from rising electricity prices, high domestic food inflation and elevated fuel prices, which are expected to be the key sources of inflationary pressure in 2022.<\/p>\n

\u201cFuel prices were up 40.4% in the year to December 2021 owing to higher global crude oil prices.<\/p>\n

\u201cFuel prices are expected to ease during 2022, but [they] remain elevated and above the 2019 average price level.<\/p>\n

\u201cGlobal supply-demand imbalances triggered an acceleration in the price of raw materials and intermediate inputs, which will continue to put upward pressure on consumer inflation.<\/p>\n

\u201cMedium\u2010term risks to the inflation outlook are to the upside, primarily as a result of price pressures from food and non\u2010alcoholic beverages, along with petrol, energy and other administered prices.<\/p>\n

\u201cAlthough the forecast assumes 2022 and 2023 electricity prices rise in line with Eskom\u2019s application for a tariff increase in 2022\/23, there is a risk that electricity inflation may exceed the assumption due to increasing costs of ensuring electricity supply,\u201d said Treasury in the Budget Review document.<\/p>\n

Household consumption expected to grow by 2.5% in 2022<\/strong><\/p>\n

Treasury said, meanwhile, that household spending is estimated to have grown by 5.6% in 2021, following a contraction of 6.5% in 2020.<\/p>\n

Spending levels were recovering until July 2021, but fell in response to the public violence, and remain below pre\u2010pandemic levels.<\/p>\n

Consumer confidence declined, and retail operations and supply chains were severely affected, Treasury said.<\/p>\n

\u201cHousehold consumption is expected to grow by 2.5% in 2022.<\/p>\n

\u201cOver the next three years, it is supported by sustained growth in private\u2010sector wages, growth in household credit extension and relatively low borrowing costs.<\/p>\n

\u201cConsumption is supported in the near term by the extension of the special COVID\u201019 social relief of distress grant in 2022\/23, and a relatively mild fourth wave of infections, followed by further easing of COVID\u201019 restrictions at the end of 2021.\u201d<\/p>\n

Treasury said, however, that a weak employment outlook and higher inflation are likely to limit the pace of recovery in 2022.<\/p>\n

\u201cSustained GDP growth and job creation are needed for higher consumption.\u201d \u2013 SAnews.gov.za<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Headline inflation is projected at 4.8% in 2022 and 4.4% in 2023, National Treasury said on Wednesday.  This is attributed to food and energy prices, especially municipal rates from rising electricity prices, high domestic food inflation and elevated fuel prices, which are expected to be the key sources of inflationary pressure in 2022. \u201cFuel prices […]<\/p>\n","protected":false},"author":1,"featured_media":217444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[38678],"class_list":{"0":"post-217443","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-south-africa","8":"tag-sanews","9":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2022\/02\/inflation-projected-to-reach-4-8-in-2022.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/217443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=217443"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/217443\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media\/217444"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=217443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=217443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=217443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}