Weekly Market & Economic Update — 25 May 2026

WEEKLY MARKET & ECONOMIC UPDATE — 25 May 2026

Inflation Bites Hard | Rand Rebounds | Gold Shines Bright

SOUTH AFRICAN ECONOMIC DASHBOARD JSE All Share (ALSI): 116 201 — Gained +2.2% this week USD/ZAR: R16.30 — Rand strengthened (-1.7%) EUR/ZAR: R18.98 — Rand strengthened (-1.8%) GBP/ZAR: R22.00 — Rand strengthened (-1.2%) Inflation (CPI): 4% — Inflation hits 4% as fuel shock bites Repo Rate: 6.75% — SARB MPC 26 Mar 2026 Prime Lending Rate: 10.25% — Repo + 3.5% Gold Price: $4,523/oz — Rally continues (+0.4%) Brent Crude Oil: $100.21/bbl — Eased (-9.9%) SA 10-Year Bond Yield: 8.20% — MacroMicro 17 Apr 2026

MARKET COMMENTARY Market Commentary This week saw geopolitical tensions fuel inflation concerns, while South Africa received a positive outlook and corporate activity provided local market highlights.

Global markets navigated a complex landscape this week, with crude oil prices easing on news of potential oil, gas, and fuel shipments through Hormuz, yet remaining elevated due to ongoing war weighing on global growth. This volatility, coupled with a Chinese mine disaster sparking a jump in coal prices, contributed to persistent inflation fears worldwide. Gold, often seen as a safe haven, jumped significantly as prospects of an Iran deal tempered some inflation concerns, even as stocks neared record highs in some segments. Domestically, the South African economy grappled with the direct impact of global events, as inflation hit its mark with fuel shock biting hard, signaling a likely rate hike ahead. However, a positive note emerged with Moody's 'upgrading' South Africa's outlook, contributing to the rand's rebound in emerging carry trade. Corporate news saw Altron declare a significant special dividend after a three-year turnaround, contrasting with Pick n Pay pushing back its break-even target as core earnings remained weak, highlighting varied performance in the local business landscape.

The persistent rise in fuel prices is directly translating into higher taxi fares and broader transportation costs, impacting your daily commute and the price of goods. With inflation hitting its mark, the South African Reserve Bank is signaling a rate hike, which will inevitably increase home loan and other credit repayments. Consumers should brace for continued pressure on disposable income and consider reviewing budgets to mitigate rising costs, especially as global conflicts continue to influence local prices.

Gary Andrew, CFP® Certified Financial Planner Consilium Private Wealth (Pty) Ltd | FSP No. 46760 www.consiliumpw.co.za