Cape Town – South Africa’s headline consumer inflation increased to 3.2% year-on-year in January, up from 3.0% in December, according to data from Stats SA.
Economists had predicted a rise to 3.3%, still below the South African Reserve Bank’s target of 4.5%.
Month-on-month inflation stood at 0.3% in January, compared to 0.1% in December.
The main contributors to the 3,2% annual inflation rate were:
• housing and utilities (4,5% and contributing 1,1 percentage points);
• food and non-alcoholic beverages (2,3% and contributing 0,4 of a percentage point); and
• restaurants and accommodation services (4,9% and contributing 0,3 of a percentage point) – see
Table C and Table E.
#𝐙𝐀𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 || Consumer price #inflation increased to 3,2% in January from 3,0% in December.
Download the release here: https://t.co/BPyyrp0zjx#StatsSA #ZACPI #GovZAupdates pic.twitter.com/0aqlxI4WQa
— Statistics South Africa (Stats SA) (@StatsSA) February 26, 2025
This report is the first to incorporate updated weights and new items in the consumer inflation basket, including rosé wine, air fryers, and streaming services, reflecting shifts in spending habits.
The central bank has cut interest rates in its last three monetary policy meetings.
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Compiled by Betha Madhomu
