11.04.2025
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Annual inflation rate increased to 3.2% in January

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  • A woman uses a trolley as she shops at a Pick n Pay store at the Dobson Point Shopping Centre, in Soweto, South Africa, March 19, 2024.

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Data released by Statistics South Africa shows that the annual consumer inflation rate increased from 3% in December last year, to 3.2% in January 2025.

The main contributors to the annual inflation rate were housing and utilities, food and non-alcoholic beverages, as well as restaurants and accommodation services.

Independent Economist Elize Kruger says the uptick in inflation is in line with analysts’ expectations.

“So, the bigger picture on inflation in South Africa remains unchanged, we have inflation in South Africa well under control. If you look at the components of interest is the food price basket, given that we’ve got an increase in their weighting in the new basket.  We still see food inflation still under control, 1,5% on an annual basis, still a very low number. Also, we’ve seen revised components in communication services and equipment, contracting by 0,5% on an annual basis.  So, inflation for this year, I forecast that we see an upward trend from current levels towards the end of the year but an average that will be lower than last year’s 4,5%.”

 

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