South Africa’s annual inflation rate eased to 3.5% in January 2026 from 3.6% in December, coming in slightly above market expectations of 3.4%. The moderation was driven mainly by lower transport costs (-0.2% vs 1.0% in December), reflecting a notable decline in fuel prices (-3.7% vs 0.6%).
By contrast, inflation in key expenditure categories remained relatively sticky. Housing and utilities inflation registered 4.8% (vs 4.9% previously), while food and non-alcoholic beverages held steady at 4.4%, both continuing to underpin overall price pressures. Food inflation was particularly supported by stronger meat price increases (13.5% vs 12.6%), amid ongoing supply constraints associated with foot-and-mouth disease.
The annual core inflation rate—excluding food, non-alcoholic beverages, fuel, and energy—climbed to 3.4% in January, its highest level in nearly a year, up from 3.3% in December. On a monthly basis, the consumer price index increased by 0.2%, matching the pace recorded in the previous month.
