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South African Reserve Bank Governor’s Insights on Inflation

Published

11 months ago

July 5, 2023

South African Reserve Bank Governor, Lesetja Kganyago, emphasised that inflation disproportionately impacts the poor. Speaking at the “Talk to the SARB” Forum in Soweto, south of Johannesburg, on Tuesday night, Kganyago highlighted the consequences of COVID-19 shocks on the country’s economy, resulting in a recession as reported by the SABC News.

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The governor pointed out that the recession was caused by disrupted lives and economic volatility brought about by the COVID-19 pandemic. This downturn led to demand exceeding supply, leading to price increases in essential commodities such as food and fuel.

Kganyago’s statement underlines the global hardship experienced due to the pandemic, with South Africa being no exception. The recession, triggered by the shockwaves of COVID-19, has profoundly impacted the country’s economy, exacerbating the challenges faced by the poor and vulnerable segments of society.