South Africa set to lower inflation target in 2026, poll shows

South Africa will probably wait until next year to lower its inflation target to address more pressing issues such as weak economic growth and fiscal consolidation, according to a survey of investors and analysts.

The South African Reserve Bank and National Treasury have been working on revising the inflation goal for almost a year, and will hold a conference on the matter next month.

Inflation averaged 2.9% in the last three months of 2024, its lowest level since the second quarter of 2020 and below the current 3% to 6% target range.

Governor Lesetja Kganyago wants to update the goal that’s been in place for a quarter of a century. He has argued that a single-point target of 3% would be in line with South Africa’s peers and allow for lower interest rates.

His counterpart at the Treasury, Finance Minister Enoch Godongwana, said he is unlikely to announce a new