FX.co ★ South Africa Inflation Rate Rises to 3.6%, as Forecast

In December 2025, South Africa experienced a slight increase in its annual inflation rate, which rose to 3.6% from 3.5% in November, aligning with analysts' forecasts. The primary drivers of this uptick were the categories of housing and utilities at 4.9%, food and non-alcoholic beverages at 4.4%, and insurance and financial services at 7%. Meanwhile, the core inflation rate—which excludes volatile items such as food, non-alcoholic beverages, fuel, and energy—climbed to 3.3%, marking the highest level in the past ten months, up from 3.2% in November. On a month-to-month basis, the Consumer Price Index (CPI) increased by 0.2%, following a decline of 0.1% in the preceding month.