More significantly, the MPC said its headline CPI forecast had deteriorated slightly, showing a two-quarter breach of target in H1 2016 followed by a slightly weaker inflation trajectory in H2 16, with headline inflation projected to rise 5.8% through the second half of 2016.



SABR forecasts the electricity price hikes set to be implemented in the middle of the next year could well exceed the 13%, whereas, the bank keeps it forecasts for core inflation unchanged from the last MPC, notes Barclays.



Cost-push pressures from wage settlements and input costs have been high and therefore, core inflation should fall steadily to 5.2% in 2017 as the SARB forecasts, says Barclays.