FX.co ★ South Africa 1-Year Inflation Outlook Jumps in Q2

South African households’ one-year-ahead inflation expectations rose to 4.2% for Q2 2026, up from a record low of 3.6% in the previous quarter. The survey, conducted between May 18 and June 4, took place before the signing of the agreement to reopen the Strait of Hormuz—an event that subsequently eased global oil prices and reduced domestic fuel costs. Over the same interval between survey rounds, South Africa’s annual inflation rate increased to 4.5% from 3.0%, driven by gasoline prices reaching record highs. Average inflation expectations two years ahead also climbed, to 3.9% from 3.6%, further complicating the central bank’s efforts to anchor expectations around its 3% target.