South Africa’s central bank Governor Kganyago stated that inflation could dip below 4% in the coming months, allowing for more policy flexibility after the bank’s recent rate cut. The bank’s forecast places inflation at 3.6% by Q4 2024 and an average of 4% in 2025, with consumer price growth already at 4.4% in August. The inflation outlook is boosted by rising business confidence following a centrist coalition formed after the May elections.