This article provides an overview of the Bureau for Economic Research's business sector inflation expectations data in South Africa. It includes firm-level dimensions and characteristics, emphasizing the importance of analyzing this data. The disaggregated data offers valuable insights for policymakers on how well "anchored" inflation expectations are and the extent to which inflationary pressures spread through the economy.
The analysis of firm-level data from recent post-COVID years (2021-2023) suggests that second-round effects may have occurred. There is evidence indicating that inflation expectations might have become moderately unanchored, along with underlying inflationary pressures that have broadened.