South Africa Headline Inflation Edges Up to 4.5% in September

Image of South Africa, Cape Town City

South Africa’s headline consumer inflation rose slightly to 4.5% year on year in September, edging up from 4.4% recorded in August.

The latest Consumer Price Index data released by Statistics South Africa on Wednesday showed that rising transport costs remained the primary driver, surging 10.8% year on year as cumulative domestic fuel price hikes filtered directly into public transport fares.  

On a monthly basis, consumer prices increased by 0.4% between August and September, reflecting accelerating price pressures in key components across the basket.  

Food and non-alcoholic beverages inflation also accelerated for a second consecutive month, climbing to 1.2% in September from 1.1% in August, driven by gains in agricultural commodities.  

Meanwhile, underlying core consumer prices held relatively steady, keeping broad second-round inflationary effects contained across non-energy goods and services categories.  

The print anchors annual inflation at the midpoint of the South African Reserve Bank’s 3% to 6% target range, offering modest policy flexibility ahead of its upcoming interest rate decision.

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