ABSTRACT
AI & A REVIEW OF
SOUTH AFRICA’S
POST-PANDEMIC
PRICE STABILITY
This report analyses South Africa’s price
stability from 2020–2025, examining
inflation volatility, policy interventions, and
rising costs. It evaluates AI-assisted
drafting, highlighting strengths, limitations,
and academic rigour.
Naldon Ramlakan
26949059
Word Count
AI Prompts: 97 Words
AI Evaluation: 102 Words
Report: 333 Words
Contents
1. Effective prompting to improve the outputted report........................................................... 2
2. Evaluation of AI output .......................................................................................................... 3
3. Academic Report: An analysis of price stability in post-pandemic South Africa ................... 4
3.1. Introduction .................................................................................................................... 4
3.2. Inflation Volatility and Policy Interventions .................................................................... 4
3.3. Rising Price Levels and Their Effect on the Embryonic Consumer .................................. 5
3.4. Conclusion ....................................................................................................................... 5
Bibliography ............................................................................................................................... 6
1. Effective prompting to improve the outputted report
“The last 10 years should run from 2014-2024. Correct this.”
“The desired output is an academic report - this means it should meet the following criteria:
formal language, objectivity, precision, evidence-based arguments, and a clear, logical
structure. Improve the report by providing more objective points in a logical series.
Additionally, provide evidence by citing academic sources from reputable journals. Utilise this
by including in-text references and a reference list in the Harvard-Stellenbosch referencing
style. Before responding reason and check that each of the criteria above are met.”
Additionally, I have used the “Reason” feature on Chat GPT.
2. Evaluation of AI output
The AI has responded to the rudimentary prompt well, easily correcting the dates. It however
fell short with the more compound prompt. The formatting has been improved from giving
numbers and making a conclusion to a much more refined one where it has made a point,
supplemented it with reputable evidence and valid statistics. I found that the AI-selected
sources were relevant and accurately supported the arguments made by the AI. Unfortunately
this did have a few shortcomings. The in-text references were not uniformly formatted in the
Harvard-Stellenbosch style and the reference list did not include all sources that were cited
in-text.
3. Academic Report: An analysis of price stability in
post-pandemic South Africa
3.1. Introduction
The economic welfare of a nation is often determined by price stability, defined as the
condition whereby changes in the general price level do not significantly influence economic
decision-making (Vermeulen, 2020). Price stability is affected by policy interventions,
long-term price trends, and external shocks (Pillay & Naicker, 2018). This report examines
inflation and CPI trends in South Africa from 2020 to 2025, focusing on these critical factors.
CPI
Линейная (CPI)
9,0
105,00
8,0
100,00
Inflation(%)
7,0
95,00
6,0
5,0
90,00
4,0
85,00
3,0
80,00
2,0
75,00
1,0
70,00
2020/01
2020/03
2020/05
2020/07
2020/09
2020/11
2021/01
2021/03
2021/05
2021/07
2021/09
2021/11
2022/01
2022/03
2022/05
2022/07
2022/09
2022/11
2023/01
2023/03
2023/05
2023/07
2023/09
2023/11
2024/01
2024/03
2024/05
2024/07
2024/09
2024/11
2025/01
0,0
Consumer Price Index (Points)
Inflation
Year and Month
Figure 1 Inflation and CPI in South Africa (SARB, 2025)
3.2. Inflation Volatility and Policy Interventions
Inflation volatility has detrimental effects on price stability and necessitates targeted policy
measures. The pronounced downturn in inflation during the second quarter of 2020 as seen
in Figure 1 above was primarily driven by the COVID-19 pandemic, which sharply curtailed
consumer demand and economic activity. In response, the Reserve Bank enacted proactive
monetary measures by reducing the repo rate from 3.5% in Q1 2020 to 3.0% in Q2 2020
(Matlasedi, 2023). This decisive move was aimed at stimulating economic activity and
stabilizing inflation expectations, thereby cushioning the economy from the pandemic’s
adverse impacts (Meyer, 2015).
3.3. Rising Price Levels and Their Effect on the Embryonic Consumer1
Figure 1 illustrates a clear linear growth in price levels during this period, placing considerable
financial strain on emerging consumers. Despite relatively low inflation in Q4 2024, the
persistently high standing price levels continue to erode household budgets and undermine
consumer well-being (Lekhuleni & Ndlovu, 2023). The escalating housing crisis further
aggravates these challenges, significantly impeding the financial independence of embryonic
consumers (Van der Westhuizen, 2012).
3.4. Conclusion
In conclusion, the period from 2020 to 2025 underscores the importance of proactive
monetary policy in curbing inflation volatility and managing elevated price levels. While policy
measures have mitigated some adverse impacts, persistent structural challenges, exemplified
by the housing crisis, highlight the need for ongoing innovation and intervention to secure
long-term price stability and economic resilience.
1 The embryonic consumer denotes an individual in the early stages of financial independence;
typically someone who has recently left home, is a university student, or is newly employed.
Bibliography
Lekhuleni, T.I. & Ndlovu, G., 2023. The dynamic effect of macroeconomic factors on housing
prices: Evidence from South Africa. Plos one, 18(11), p.e0290552.
Matlasedi, T.O.N.Y. 2023., Investigating the Source of South Africa’s Unstable Inflation Rate
and the South African Reserve Bank’s Response to it. Business Resilience, Continuity and
Regeneration, 92.
Meyer, D. 2015. Inflation targeting and price stability in emerging economies: The South
African experience. South African Journal of Economic and Management Sciences, 18(2):
215–229.
Pillay, S. & Naicker, S. 2018. Monetary policy in South Africa: Price stability and growth.
South African Journal of Economics, 86(3): 365–382.
South African Reserve Bank. 2025. Online Statistical Query. [Online]. Available:
https://www.resbank.co.za/en/home/what-we-do/statistics/releases/online-statistical-query
[Accessed 11 April 2024].
Van der Westhuizen, C.A. 2012. Assessing the impact of price stability on economic policy in
South Africa. South African Journal of Economic and Management Sciences, 15(1): 29–45.
Vermeulen, C. 2020. On the mandate, ownership and independence of the South African
Reserve Bank. South African Journal of Economic and Management Sciences, 23(1): 1–10.
[Online]. Available: https://sajems.org/index.php/sajems/article/view/3416/2144 [Accessed
12 April 2025].