Another headache for the Reserve Bank in South Africa

• The Reserve Bank of South Africa is preparing for a possible rise in food inflation, in addition to its existing concerns about high energy costs.
• The South African Reserve Bank's Monetary Policy Committee kept the repo rate steady at 7.0% despite inflation being above the 3% target, citing a prior May hike as sufficient to keep inflation contained.
• The Reserve Bank still expects inflation to stick around 4% in 2026, which is at the upper end of its tolerance band, and has called for economic reforms from the government to boost growth.