FX.co ★ South Africa Inflation Rate Edges Up to 2.8% in April

South Africa's annual inflation rate ticked up to 2.8% in April 2025, a marginal increase from the 2.7% recorded in March, which had been the lowest since June 2020. The primary contributors to this upward shift included housing and utilities, which remained steady at 4.4%, driven by significant increases in electricity, gas, and fuel prices at 11.6%. Other notable increases were observed in food and non-alcoholic beverages, which rose to 4% from March’s 2.7%; alcoholic beverages and tobacco, which climbed to 4.7% from 4.1%; and the restaurant and accommodation services sector, although this area saw a decrease to 3% from 4.2%. Conversely, the most notable downward influence came from transportation costs, which plummeted by 3.9%, more than the 2.4% fall in March, largely attributed to a substantial 13.4% drop in fuel prices. Services inflation increased to 3.8% from the previous 3.5%, while goods inflation decreased to 1.7% from 2%. The Consumer Price Index (CPI) rose by 0.3% on a monthly basis, slightly below the 0.4% increase seen in March. Additionally, the annual core inflation rate fell to 3%, its lowest since July 2021, compared to 3.1% in the prior month.