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flag South Africa's 2026 inflation expectations fell to 3.8% after the central bank set a new 3% target, boosting confidence.

flag South Africa's inflation expectations for 2026 dropped to 3.8% in a fourth-quarter survey, down from 4.2% previously, following the government's announcement of a new 3% inflation target. flag The shift, driven by the South African Reserve Bank's move to narrow the previous 3%-6% range, reflects growing confidence in monetary policy. flag Forecasts for 2027 also declined to 3.7%. flag Analysts showed the most optimism, predicting 3.5% for 2026, while business and labor groups expected slightly higher rates. flag The central bank’s next interest rate decision is set for January 29, 2026.

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