FX.co ★ South Africa Inflation Picks Up Below Forecast

The annual inflation rate rose for the second consecutive month to 4.5% in September 2026, up from 4.4% in August, though it remained below market expectations of 4.7%. The acceleration was primarily driven by transport costs, which increased 10.8% year-on-year, compared with 8.8% in August. This was largely due to a steeper rise in fuel prices (27.9% vs 20.0%). Diesel prices surged 46.0%, while petrol prices advanced 25.0%, reflecting recent domestic price hikes. Food inflation also picked up slightly, to 1.2% in September from 1.1% in August. Meanwhile, core inflation—which excludes food, non-alcoholic beverages, fuel, and energy—eased to 4.0% from 4.1% in the previous month. On a monthly basis, the CPI increased 0.4% after remaining unchanged in August.