FX.co ★ South Africa Inflation Holds Steady at 2.8% in May

In May 2025, South Africa's annual inflation rate remained constant at 2.8%, maintaining the five-year low observed in April. The inflationary pressures were evident in the faster rise in prices for food and non-alcoholic beverages, which increased by 4.8% compared to 4.0% in April. Housing and utilities saw a slight increase to 4.5% from 4.4%, while clothing and footwear rose to 1.3% from 1.2%. These increases were counterbalanced by a deceleration in inflation for alcoholic beverages and tobacco, which dropped to 4.3% from 4.7%, and a significant slowdown in restaurants and accommodation services from 3.0% to 1.8%. Additionally, personal care and miscellaneous services saw inflation of 1.7% compared to 1.6% previously. Notably, transport prices experienced a substantial decline, falling by 4.8% from a decline of 3.9%. On a month-to-month comparison, the Consumer Price Index (CPI) rose by 0.2%, which is slightly lower than the 0.3% increase recorded in April, marking the smallest monthly gain in five months. At the same time, the annual core inflation rate remained stable at 3.0% in May, holding at its lowest level since July 2021.