South Africa’s consumer inflation rate has dropped for the first time in five months, easing to 2.7% in March from 3.2% in February, according to Statistics South Africa.
Patrick Kelly, Chief Director of Price Statistics, attributed the decline largely to falling fuel costs and slower growth in education fees.
“Fuel prices often play a major role in shaping monthly inflation trends,” Kelly noted. “In March, the fuel index decreased by 0.4% from February, pushing the annual rate further down from -3.6% to -8.8%.”
Education-related inflation also played a role in the decline. “Tuition fees, which are measured annually in March, rose by 4.5% this year — a notable drop from the 6.4% increase seen in 2024. School fees were up by 5%,” Kelly added.
Food inflation showed signs of relief as well, with the rate for food and non-alcoholic beverages edging down to 2.7%. Cereal products saw a slight increase to 4.3%, while maize meal inflation jumped to 13.1% in March from 10.6% in February.
Despite the spike in maize meal costs, Kelly noted a silver lining: “Monthly price increases for maize meal are beginning to slow.”
The overall decline in inflation offers some relief for consumers amid ongoing economic pressures.