FX.co ★ South Africa Inflation Rate Slows More than Expected

South Africa’s annual inflation rate eased for the second consecutive month, reaching 3% in February 2026 — its lowest level since June 2025 and slightly below market expectations of 3.1%. The continued moderation was driven primarily by a 2.1% decline in transportation costs, following a 0.2% decrease in the previous month, as fuel prices fell more sharply (-10.1% vs. -3.7%).

Price growth for food and non-alcoholic beverages also slowed, rising 3.7% year-on-year compared with 4.4% in January. Meanwhile, core inflation — which excludes food, non-alcoholic beverages, fuel, and energy — eased to 3% in February, its lowest rate in seven months, down from 3.4% in January.

On a monthly basis, the consumer price index (CPI) increased by 0.4% in February, following a 0.2% rise in the previous month.