OECD comments on SARB inflation control efforts

The Organisation for Economic Co-operation and Development (OECD) has urged the South African Reserve Bank to continue its efforts to rein in inflation.

1. The OECD has commended the Reserve Bank for its efforts to curb inflation, which has been driven by rising food prices and other factors.
2. South Africa’s food inflation rate surged to a 14-year high in March 2023, with prices for food and non-alcoholic beverages increasing by 14.0% on year.
3. Food inflation is the main contributor to South Africa’s escalating consumer price index inflation rate, which increased to 7.1% in March 2023.
4. The OECD has warned that rising inflation could lead to higher interest rates, which could hurt economic growth and job creation.
5. The Reserve Bank has already raised interest rates twice this year in an effort to curb inflation, and the OECD has urged it to continue its efforts.
6. The OECD has also called on the South African government to implement structural reforms to boost economic growth and create jobs.