THE STANDARD Bank’s economics division advocates that the target range of 3% to 6% for inflation be kept for 2006. SA adopted inflation targeting in the year 2000, said economist Monica Ambrosi, with an inflation target range of 3% to 6% being set for 2002 and 2003 - and a range of 3% to 5% for 2004 and 2005. “However,” she added, “following the collapse of the rand in December 2001 and the consequent rise of inflation, the target range for 2004 and 2005 was changed to 3% to 6%.” The target for 2006 will be announced at the end of October in the medium term expenditure framework (MTEF).
