FX.co ★ South Africa Inflation Accelerates to Over 1-Year High

In October 2025, South Africa's annual inflation rate increased for the second consecutive month, reaching 3.6%, up from 3.4% in September. However, this figure fell short of analysts' predictions of 3.7%. This marks the highest inflation rate since September 2024, primarily driven by rising costs in several sectors: housing and utilities remained steady at 4.5%, transportation saw a jump to 1.5% from a previous decrease of 0.1%, and prices for alcoholic beverages and tobacco rose to 4.5% from 4.2%. Similarly, the recreation, sports, and culture segment experienced an increase from 2.9% to 3.4%. In contrast, there was a deceleration in price growth for restaurants and accommodation services, which slowed to 2.1% from 3.0%, and food and non-alcoholic beverages, which decreased to 3.9% from 4.5%. The core inflation rate, which excludes volatile items such as food, non-alcoholic beverages, fuel, and energy, fell slightly to 3.1% in October from a seven-month peak of 3.2% in September. On a monthly basis, the Consumer Price Index (CPI) rose by 0.1%, slipping from a 0.2% rise recorded the month before.