South Africa’s inflation rate held at 3.2% in February 2025, its highest in four months, but below the Reserve Bank’s 4.5% target. Food inflation rose slightly, while core inflation fell to 3.4%, the lowest since December 2021. CPI increased by 0.9%, the highest monthly rise in a year.
In February 2025, South Africa’s inflation rate remained unchanged at 3.2%, marking its highest rate in four months while falling below the South African Reserve Bank’s target of 4.5%. This figure highlights the current economic scenario, indicating that inflationary pressures are relatively contained.
The inflation rate for food and non-alcoholic beverages increased to 2.8%, up from 2.3% in January, suggesting rising costs in these categories. Conversely, inflation in housing and utilities slightly decreased to 4.4% from 4.5%.
Notably, there was a significant deceleration in personal care and miscellaneous services inflation, which dropped to 1.1% from 5.9%, alongside ongoing deflation in the transport sector, which recorded -0.5% compared to -0.2%.
Core inflation, excluding volatile items such as food and energy, fell to 3.4%, representing the lowest level since December 2021. On a month-to-month basis, the Consumer Price Index (CPI) rose by 0.9%, the highest increase observed in a year, contrasting with a rise of only 0.3% in January.
In conclusion, South Africa’s inflation rate has remained steady at 3.2%, reflecting a stable economic environment. The rise in food prices and a decrease in specific categories like personal care illustrate the nuanced nature of inflation. Core inflation’s drop to its lowest since December 2021 may suggest a trend towards greater price stability in the economy.
Original Source: www.tradingview.com
