By: ThinkBusiness Africa
South Africa’s annual headline consumer inflation slowed slightly to 3.5% in January 2026, down from 3.6% in December, according to the latest data released by Statistics South Africa (Stats SA) on Wednesday.
The latest figure marks a return to the inflation level seen in November 2025 and remains comfortably within the South African Reserve Bank’s (SARB) target range. On a month-on-month basis, the Consumer Price Index (CPI) increased by 0.2%.
The marginal decline in the headline rate was primarily driven by a drop in transport costs and stability in several food categories.
Lower global oil prices and a resilient Rand contributed to a decrease in pump prices. Petrol (95 octane) fell by 66 cents per litre, while 93 octane dropped by 62 cents.
According to the data, the annual rate for cereal products slowed significantly to 0.6% from 2.1% in December. Notably, white rice prices fell by 11.0%, marking nearly a year of continuous deflation for the staple.
Inflation for maize meal, a key household item, saw a sharp decline from 9.5% in December to 2.6% in January.
However, despite the cooling of the overall rate, consumers continue to face significant pressure at the butchery counter. Meat inflation accelerated to 13.5% in January, up from 12.6% in December. This represents the highest level for the category since late 2017.
The surge was led by beef products, with beef steak, stewing beef, and beef mince all recording annual price increases of approximately 28% to 31%.
Analysts attribute these spikes to localized supply constraints, including the ongoing impact of foot-and-mouth disease outbreaks.
The inflation print is likely to be welcomed by the SARB’s Monetary Policy Committee (MPC). With headline inflation anchored near the mid-point of the target range and core inflation remaining stable, market expectations for a potential 25-basis-point interest rate cut in March have strengthened.
