Administered prices, which include prices set by government agencies or regulators (such as electricity tariffs, water charges, fuel prices, public transport fares), have played a key role in deviations in South Africa’s inflation from the inflation target. If one excludes volatile fuel prices, administered prices have been systematically above the mid-point of the inflation target. Core inflation, which excludes food and fuel categories, has consequently been more stable than headline inflation, though still higher than the mid-point of the inflation target (at 4.9% compared to 5.3% for headline since 2009).
