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

South Africa’s inflation rate held steady at 3.2% in February 2025, marking the highest level in four months yet still below the Reserve Bank’s 4.5% target. Inflation for food and non-alcoholic beverages rose, while housing inflation eased. Core inflation dropped to 3.4%, and CPI saw a 0.9% increase on a monthly basis, the highest in a year.

In February 2025, South Africa’s inflation rate remained unchanged at 3.2%, the highest level observed in four months. However, this figure is still notably below the South African Reserve Bank’s target midpoint of 4.5%.

Food and non-alcoholic beverage prices demonstrated an acceleration in inflation, rising to 2.8% from January’s 2.3%. Conversely, inflation for housing and utilities decreased slightly to 4.4% compared to 4.5% the previous month.

This trend contrasted with a significant decline in personal care and miscellaneous services inflation, which fell to 1.1% from 5.9%. Additionally, there was a continued deflation in transport, registering -0.5%, up from -0.2%.

The core inflation rate, which excludes volatile items like food and energy, dropped to 3.4%, marking the lowest level since December 2021. Furthermore, on a monthly basis, the Consumer Price Index (CPI) increased by 0.9%, the highest monthly rise in one year, up from a mere 0.3% in January.

In conclusion, South Africa’s inflation has stabilized at 3.2%, despite variations across sectors. Food prices are rising, whereas housing inflation has eased. The core inflation rate shows a decline, indicating broader economic trends, while the CPI experienced a notable monthly increase. These factors illustrate ongoing economic dynamics in the country, remaining under the Reserve Bank’s target.

Original Source: www.tradingview.com