South Africa's inflation prospects have improved this year, but higher international oil and maize prices could cloud the outlook, the Bureau of Economic Research (BER) said on Wednesday.
In its quarterly economic survey, the BER said inflation was unlikely to breach the upper end of the central bank's 3-6 percent target range and forecast an average CPIX increase of 5.4 percent this year, up from 4.6 percent in 2006.
International oil prices have pushed higher over the past few weeks to more than $60 a barrel after briefly dipping below $50 a barrel, raising the prospect of higher domestic fuel prices adding to inflationary pressures.
Maize prices have surged to four-year highs and are up by 30 percent since the beginning of the year, the BER said in a statement.
Read more at Reuters South Africa
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