HIGH INFLATION FORECAST FOR SHORT, MEDIUM TERMS

MBABANE - Inflation forecasts have been revised upwards for the short and medium-term.

Central Bank of Eswatini (CBE) has issued the forecasts for the period under review. The overall pick-up in 2022 is said to be aligning with the higher outturn of inflation in the last month of 2021 and the upside pressures on overall inflation.

Pressures

“These inflationary pressures emanate from expected higher South African prices and higher Brent oil prices, though expected to increase at a slower rate. “Consequently, imported inflation in the form of finished goods is expected to exert some upward movement in domestic prices,” reads the shared information in part. CBE said increases in domestic administered prices such as utility tariffs are expected in the second quarter of 2022 exerting inflationary pressures. “Although the slight improvement in the Rand poses as a downward pressure to domestic inflation, it is not enough to alter the outlook.

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