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Publications > Special Occasional Bulletin Of Economic Notes | What's New
We construct a new inflation measure to monitor underlying price developments in South Africa, termed supercore inflation. Supercore inflation is made up of the components of core inflation that are responsive to general economic conditions, as measured by the output gap. Our findings reveal that demand-driven inflationary pressures, as measured by supercore inflation, are presently balanced, with inflation outcomes hovering around the target midpoint over the past year. The finding of ‘balanced’ demand-driven inflationary pressures is consistent with a virtually closed output gap over the past year, as indicated by the South African Reserve Bank’s Quarterly Projection Model.