Inflation seen slowing further

Estimates provided last week by asset management consultancy, Kgori Capital, suggest a cooling of inflation from its previous highs in the coming months. Kgori Capital investment analyst, Kitso Mokhurutshe told Monitor Business that the expected decline was due to “strong base effects”.

In the calculation of inflation, base effects relate to inflation in the corresponding period of the previous year, which if abnormally high, distorts the measurement of inflation in the current period.