The public’s distrust in historic inflation rates may have serious implications for staying within the inflation targets as they use their perception of past inflation rates as a reference point in setting their expectations for future inflation rates.
The Money Show’s Bruce Whitfield interviewed Prof. Jannie Rossouw, Head of the Wits School of Economic and Business Sciences.
Scroll down for quotes from the audio below.
Because people do not believe the past rate of inflation they expect higher inflation in the future. This feeds into higher wage demands that feed inflation.— Prof. Jannie Rossouw, Head of the Wits School of Economic and Business Sciences
StatsSA must publish where they get their prices so that anyone with statistical knowledge can check the figures.— Prof. Jannie Rossouw, Head of the Wits School of Economic and Business Sciences
There’s a danger of perpetually higher inflation expectations.— Prof. Jannie Rossouw, Head of the Wits School of Economic and Business Sciences
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