South Africa’s Inflation Rate Remains Steady at 3.2% in February 2025

South Africa’s inflation rate held steady at 3.2% in February 2025, despite food prices rising. Core inflation dropped to 3.4%, the lowest since December 2021. Monthly CPI increased by 0.9%, the highest in a year, indicating mixed economic pressures.

In February 2025, South Africa’s inflation rate remained constant at 3.2%, marking its highest level in four months, yet it continues to fall short of the South African Reserve Bank’s target midpoint of 4.5%. A notable increase was observed in the cost of food and non-alcoholic beverages, which rose to 2.8% from 2.3% in January. However, this rise was somewhat mitigated by a slight decrease in housing and utilities inflation, which dropped to 4.4% from 4.5%.

Additionally, inflation for personal care and miscellaneous services experienced a significant slowdown, falling to 1.1% from 5.9%. Transport prices, on the other hand, continued to reflect a deflationary trend, now at -0.5%, compared to -0.2% previously. Furthermore, the core inflation rate, which excludes volatile items such as food and energy, decreased to 3.4%, the lowest figure recorded since December 2021.

On a monthly scale, the Consumer Price Index (CPI) recorded a substantial increase of 0.9%, representing the highest month-on-month rise in a year, a marked increase from the 0.3% rise observed in January.

In summary, South Africa’s inflation rate stabilizes at 3.2% in February 2025, although it remains below the central bank’s target. Food and non-alcoholic beverage prices contributed to a rise in inflation, while other sectors saw varied trends. The core inflation rate has reached its lowest since late 2021, with the CPI experiencing the highest monthly increase in a year. This complex interplay of factors presents an ongoing challenge for economic management.

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