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As of 2021, the inflation rate in South Africa is 4.1%.
South Africa has experienced a fluctuating inflation rate over the years. In the 1990s and early 2000s, inflation was relatively low and stable, hovering around 5-7%. However, in the mid-2000s, inflation started to rise due to a combination of factors, including increased global food and oil prices, a weakened currency, and high levels of government spending. This led to a period of high inflation, with rates reaching a peak of over 10% in 2008.
Since then, the South African Reserve Bank has taken steps to control inflation, such as increasing interest rates, and inflation has declined to more manageable levels. However, inflation has again been on the rise in recent years, partly due to a weak economy and high levels of government debt.
The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.
At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.