South Africa’s consumer inflation rate eased in March, in line with market expectations. According to Statistics South Africa, the annual Consumer Price Index (CPI) rose by 2.7%—down from 3.2% in February—marking the first decline in five months.
The main contributors to the annual inflation rate included housing and utilities, food and non-alcoholic beverages, as well as restaurant and accommodation services. However, the most significant easing came from lower fuel prices.
Stats SA’s Patrick Kelly explained, “Lower fuel costs had a significant impact on the overall inflation rate.” The fuel index declined by 0.4% month-on-month, bringing the annual rate down to -8.8%. In March, a litre of 95-octane petrol cost R22.34, compared to R24.45 in the same month last year. Diesel prices also dropped, from R24.85 to R22.80.
Education costs, which are surveyed annually in March, also helped ease inflation. Overall, education fees rose by 4.5% in 2025—down from 6.4% in 2024. School fees increased by 5%, while tertiary education recorded a more modest rise of 3.7%.
Food inflation was slightly more subdued, ticking down to 2.7% from 2.8% in February. However, notable price increases were still recorded in vegetables, cereals, meat, and fish. Maize meal, in particular, continued its upward trajectory with a 13.1% annual increase. Instant coffee and black tea prices also remained elevated, with annual hikes of 18.8% and 12.8% respectively.
Rental costs continued to rise as well. Actual rents increased by 2.9% year-on-year, while owners’ equivalent rent went up by 2.4%.
VOC News
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