Inflation fell for the third successive month to eight percent in March, raising hopes that the BoB inflation target could be achieved before year-end. The central bank has projected that inflation will return to the target range in the second half of the year.However, a brief survey carried out by Mmegi revealed that economic pundits reckon that a blend of existing and emerging inflationary pressures will see, as in the past two years, the central bank failing to bring down the annual inflation rate to below six percent by year end.
"Inflation remains stubbornly above the target range, weighing heavily on already strained consumer disposable incomes. We expect inflation to hover around the 8-9 percent levels throughout the year with a likelihood to trend higher in the short term driven by a possible increase in fuel prices, administered prices (water and electricity tariffs) and higher food prices mainly underpinned by the drought Botswana and (some other parts of South Africa) are currently facing," said Carol-Jean Harward, an analyst with Investec Asset Management.
