FX.co ★ South Africa Inflation Rate Higher, Still Below Forecasts

South Africa’s annual inflation rate climbed for the third consecutive month to 4.5% in May 2026, its highest level since July 2024, though still below market expectations of 4.7%. The main upward drivers were transportation costs, which surged 9.4% compared to 4.9% in April, and housing and utilities, where inflation edged up to 5.3% from 5.2%. Core inflation—which excludes food, non-alcoholic beverages, fuel, and energy—rose to 3.8% in May, the highest in more than a year and a half, from 3.6% in April. On a monthly basis, the consumer price index increased 0.7% in May, easing from a 1.1% rise in the previous month.