Global Economy
SARB Monetary Policy Review: Global inflation rose in H1 '26 as the Middle East conflict disrupted energy supplies, widened refinery margins and lifted transport and production costs
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The review links higher global inflation in H1 2026 to conflict-related energy and cost pressures and warns that persistent price shocks could erode target credibility if embedded in expectations and wages.
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Policy must guard against the risk that persistent fuel, administered price and food shocks become embedded in expectations and wages thereby undermining the credibility of the target.
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