Inflation expectations have tended to be above the inflation target in South Africa. However, the latest survey of South African inflation expectations suggests that they have fallen in line with the mid-point of the target band. Inflation expectations remain much higher than target in Russia, India and Sweden, while they are below target in Switzerland and Israel. As we have shown in previous posts, inflation expectations have been less strongly anchored in South Africa than in other countries, with inflation expectations reacting more strongly to inflation deviations from the target.
