South Africa’s inflation rate held at 3.2% in February 2025, the highest in four months but still below the Reserve Bank’s target. Food and non-alcoholic beverage inflation rose, while personal care services saw a sharp drop. Core inflation fell to 3.4%, with monthly CPI increasing by 0.9%.
South Africa’s inflation rate maintained a steady 3.2% in February 2025, its highest rate in four months but still below the Reserve Bank’s target of 4.5%. Food and non-alcoholic beverages experienced a rise in inflation to 2.8%, compared to 2.3% in January, while housing and utilities saw a slight decrease to 4.4% from 4.5%. Notably, personal care and miscellaneous services had a significant drop in inflation from 5.9% to 1.1%, and transport continued to show deflation at -0.5%.
Additionally, core inflation—minus food, non-alcoholic beverages, fuel, and energy—reduced to 3.4%, marking the lowest level since December 2021. On a monthly scale, the Consumer Price Index (CPI) surged by 0.9%, the largest increase in a year, up from a 0.3% rise in January.
In conclusion, South Africa’s inflation rate remains stable at 3.2%, demonstrating mixed performance across various sectors. While food costs continue to escalate, decreases in personal care and transportation costs have balanced overall inflation figures. Core inflation has also hit a significant low, indicating changes in consumer price dynamics, coupled with a notable monthly CPI increase.
Original Source: www.tradingview.com
