Consumer price inflation in South Africa eased slightly in November, strengthening expectations of a potential interest rate cut early next year.
Data released by Statistics South Africa shows that headline consumer inflation declined from 3.6% in October to 3.5% in November. Inflation remains close to the South African Reserve Bank’s revised target of 3%.
The main upward pressure on inflation came from housing and utilities, as well as food and non-alcoholic beverages. Stats SA noted that while food and non-alcoholic beverage prices continued to rise, the cost of used vehicles declined during the period.
Annual inflation eased in five of the 13 product categories measured, including transport, recreation, sport and culture, and information and communication.
The moderation in consumer inflation has raised optimism that the Reserve Bank could consider a further interest rate cut when it announces its next policy decision on 29 January 2026.