It is widely recognized that monetary policy within a country should be primarily about the pursuit of price stability. However, it is not yet clear how this goal can be achieved most effectively. This debate remains unresolved, but a growing number of countries have adopted inflation targeting as their monetary policy framework. (Dr EJ van der Merwe, 2002) The topic of inflation targeting is one that immediately evokes different perceptions from different people. Many believe that low inflation should be the main goal of monetary policy, while others (such as labor activists) believe that the main concern should be a higher growth rate to stimulate employment. For us, it is important to first establish what inflation actually is. Inflation can be defined as an increase in the general price level of goods and services. It is measured as the annual percentage change in the prices of goods considered necessary for life in that country. These goods are included in a "market basket" that rarely changes, so this measure may reflect fluctuations in the price level and purchasing power of the Rand. There are two basic types of inflation, namely: cost-push and demand-push. pull inflation. Cost inflation is caused by an increase in the cost of production. Increases in the cost of labor, raw materials, equipment, and borrowed money push up the cost of production, causing overall prices to rise. Demand-pull inflation is caused by an increase in the demand or supply of money. This increase in demand allows producers to charge higher prices. A lot can be learned from this economic indicator. High levels of inflation indicate a...central area of ​​the chart. (Mishkin F, 2000) Inflation targeting makes inflation (rather than output or unemployment) the primary objective of monetary policy. This makes it clear why some unions may not agree with this regime. Although not an intermediate objective of monetary policy, low and stable inflation supports sustainable growth and job creation. (SARB, 2005) Inflation targeting has played an important role in strengthening the effect of forward-looking expectations on inflation. I believe that the introduction of inflation targeting has brought benefits to the implementation of monetary policy in our country. Applying this framework has strengthened the SARB's focus on price stability and helped inflation fall to low, manageable levels. It also provided an anchor for expectations about future inflation, which influences price and wage setting. (SARB, 2005)