Mthuli Ncube admits that he spooked the markets

Professor Mthuli Ncube almost admitted responsibility for the October price increases when he presented his maiden budget statement today. Month on month inflation rate for October 2018 stood at 16.44%, representing a 15.52% increase on the September level.

Said Mthuli Ncube, "The spike in prices of goods and services appears to have receded, confirming that the main price hikes were a spontaneous response to uncertainty and confidence issues."

Soon after his appointment, Ncube made a series of statements that spooked financial markets.

The resultant chaos and panic saw the parallel market exchange rate for the US dollar and against bond notes spiking leading to massive price hikes.  

Since then the wider government was forced to respond through, temporary suspension of Statutory Instrument 122 of 2017 and efforts to direct foreign currency cover to essential areas. Now the minister believes inflation will start going down.

However, Ncube thinks that the measures taken by Government, which include moral suasion, temporary suspension of Statutory Instrument 122 of 2017 and efforts to direct foreign currency cover to essential areas, are also beginning to yield positive results and monthly inflation will fall, going forward.