Inflation In South Africa

Inflation. Historical Examples of Inflation and Hyperinflation. Inflation and the 2008 Global Recession. Inflation in Moderation Harms and Benefits. Effects of Inflation. Negative effects. Stuff Costs More. Borrowing Money Costs More. ARMs Might Have Higher Rates. Hoarding in Response to Inflation. Erosion of Long-Term Savings. Positive effects. Better Savings Account Rates. Cheaper to Travel Abroad. Offsets Negative Effects of Deflation. Higher Wages. Cost-of-Living Adjustments. Inflation in South Africa. Causes of Inflation. Keynesian view. Demand-pull inflation. Example of demand-pull inflation in UK. Cost-push inflation. Build-in inflation. Unemployment. Controlling inflation. Fiscal policy. Monetary policy. Supply side economic policies. Direct controls. Evaluation points – how best can inflation be controlled? Conclusion. Bibliography.

In the graph above we can see how uneven inflation rate is in South Africa. Between 2008 and 2010 the inflation rate was the highest. Then it decreased critically and from 2012 to 2014 it remained stable. Then in 2015 it decreased again and now it is more or less stable.

This is South Africa’s CPI inflation rate since 1958. As we can see the CPI inflation rate from the end of 1970s was increasing drastically. And in 1985 it reached more than 20%. From that year it increased. And in 2003 it reached the lowest CPI inflation rate percentage.