Does the South African rand's relatively large volatility affect inflation? To shed some light on this question, a … standard estimation technique of exchange rate pass-through to inflation is extended to incorporate exchange rate volatility …. Estimated results suggest that higher exchange rate volatility tends to increase core inflation but to a relatively limited …

Inflation forecasts are modelled as monotonically diverging from an estimated long-run anchor point, or 'implicit … anchor', towards actual inflation as the forecast horizon shortens. Fitting the model with forecasts by analysts, businesses … and trade unions for South Africa, we find that inflation expectations have become increasingly strongly anchored. That is …

This paper applies a state-space approach to estimate the implicit inflation target of the South African Reserve Bank … (SARB) since the adoption of the Inflation Targeting (IT) framework. The paper's findings are two. First, although the … official inflation target range is 3.6 percent, in practice, the SARB seems to have aimed for the upper segment of the band (41 …