Cape Town – South Africa’s inflation fell to 2.7% in March — its lowest level in nearly five years — dropping below the Reserve Bank’s 3%-6% target range.
This was also lower than economists’ expectations.
Statistics SA revealed the inflation rate for March on Wednesday morning, with notable trends across key sectors:
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Fuel: The fuel index dropped by 0.4% from February, with petrol and diesel prices significantly lower than a year ago. Petrol (95-octane, inland) cost R22.34 in March, down from R24.45, and diesel dropped to R22.80 from R24.85.
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Education: Education costs rose 4.5% overall—lower than 2024’s 6.4%. School fees rose 5% (down from 6.6%) and tertiary education fees climbed 3.7% (down from 5.9%).
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Food & Drinks: Food and non-alcoholic beverage inflation eased slightly to 2.7%. Cereal product inflation rose to 4.3%, driven largely by maize meal (up 13.1%). However, monthly price increases for maize meal have been slowing.
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Beverages: Hot beverages remain expensive, with annual inflation for the category at 14.4%. Instant coffee rose 18.8% and black tea 12.8%. Alcohol prices also increased, with wine up 5.3%, beer 4.4%, and spirits 4.3%.
Annual consumer price inflation was 2,7% in March, down from 3,2% in February.
Listen here for more: https://t.co/VsbVvGJ3vW#StatsSA #CPI #GovZAupdates pic.twitter.com/d8JWxVlmTH
— Statistics South Africa (Stats SA) (@StatsSA) April 23, 2025
Despite the slowdown, Reserve Bank Governor Lesetja Kganyago warned that risks to inflation and economic growth have increased significantly since the start of the year, Daily Investor reported.
He also raised concerns about the upcoming 0.5% VAT hike set to take effect on May 1.
The central bank is expected to remain cautious amid these uncertainties.
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Compiled by Betha Madhomu
