As of February 2025, South Africa’s inflation rate is stable at 3.2%, influenced by various pricing dynamics, with an increase in food prices and a decrease in core inflation. The CPI also surged by 0.9% on a monthly basis, suggesting notable economic activity.
In February 2025, South Africa’s inflation rate remained stable at 3.2%, marking its highest level in four months yet staying significantly below the South African Reserve Bank’s target midpoint of 4.5%. This stability was driven by various factors in the economy, particularly the rise in prices for food and non-alcoholic beverages, which recorded an increase to 2.8% from 2.3% in January.
Conversely, there was a minor decline in inflation related to housing and utilities, which decreased to 4.4% from 4.5%. Notably, personal care and miscellaneous services experienced a sharp decrease in inflation, settling at 1.1%, down from 5.9%. Transport saw continued deflation, with prices decreasing by 0.5% compared to a decline of 0.2% previously.
Core inflation, which excludes volatile categories such as food, non-alcoholic beverages, fuel, and energy, decreased to 3.4%, the lowest figure recorded since December 2021. Additionally, when assessed on a monthly basis, the Consumer Price Index (CPI) rose by 0.9%, marking the highest monthly increase seen in a year, an uptick from the 0.3% rise noted in January.
In summary, South Africa’s inflation rate showcases stability at 3.2%, influenced by mixed movements in various sectors such as food, housing, and transport. The decline in core inflation and the notable increase in monthly CPI highlight ongoing economic dynamics. Overall, the inflation rate remains below the central bank’s target, indicating manageable inflationary pressures.
Original Source: www.tradingview.com
