South African Inflation Expectations Ease as War Clouds Outlook

South Africa’s two-year inflation expectations moderated marginally, welcome news for the central bank as the Iran war clouds the outlook.

Average inflation expectations two years ahead — the gauge monetary policymakers prefer for setting borrowing costs — fell to 3.6% in the first quarter from 3.7% previously, according to a survey published by the Stellenbosch-based Bureau for Economic Research on Monday.