South Africa's inflation outlook has improved significantly, with economists now expecting price increases to remain softer than initially forecast.
This shift gives the Reserve Bank more flexibility to cut interest rates in the coming months, offering relief to cash-strapped households, as mentioned by the Daily Investor .
Earlier this year, analysts predicted inflation would climb toward the midpoint of the Reserve Bank's 3 to 6 target range. But after several months of lower-than-expected inflation readings, forecasts have been revised downward.
FNB's economics team now projects headline inflation to finish 2025 below the central bank's 4.5 midpoint, a positive signal for borrowers and savers alike.
Economic strain easing for householdsSpeaking at the launch of FNB's Retirement Insights Survey , senior economist Koketso Mano highlighted how the economic climate impacts retirement savings.