South Africa's 2025 Annual Inflation Averaged 3.2%, Lowest in 21 Years, as December Rate Holds at 3.6%
PRETORIA, 21 January 2026. South Africa's average headline consumer price inflation for the full year 2025 was 3.2%, the lowest annual average since 2004, Statistics South Africa reported on Wednesday, as December 2025 inflation came in at 3.6% year on year, slightly higher than November's 3.5%...
South Africa's 2025 Annual Inflation Averaged 3.2%, Lowest in 21 Years, as December Rate Holds at 3.6%
PRETORIA, 21 January 2026. South Africa's average headline consumer price inflation for the full year 2025 was 3.2%, the lowest annual average since 2004, Statistics South Africa reported on Wednesday, as December 2025 inflation came in at 3.6% year on year, slightly higher than November's 3.5% but remaining within the South African Reserve Bank's new 3% plus or minus one percentage-point target band.
The Stats SA report highlighted that the December 2025 consumer price index was 0.2% higher than November on a monthly basis. The main drivers of the December annual inflation rate were housing and utilities, which rose 4.5%, and food and non-alcoholic beverages, which increased 4.4%. Meat inflation continued to accelerate, reaching 12.6% annually in December, compared with a 0.4% deflation in December 2024, with beef steak prices rising 29.4% over the year.
Not all food categories experienced price pressures. Maize meal inflation moderated to 9.5% in December from 9.9% in November, and milk products entered deflationary territory at negative 1.1%. Housing rental inflation was 3.7% for the year, with actual rental payments rising 0.8% in the fourth quarter.
The full-year 2025 average of 3.2% was well below the SARB's previous 3%-6% target band and aligned with the new 3% point target adopted in November 2025. The figure was also below the SARB's own forecast of 3.3% for the year. South Africa's inflation trajectory was supported by stable fuel prices through most of 2025, subdued global commodity costs, and the improved electricity supply that reduced costs for businesses and households previously relying on diesel generators.
Economists noted that the subdued inflation outlook provides the SARB's Monetary Policy Committee, which meets on 29 January 2026, with room to consider a further rate reduction, though most forecasters expected the bank to hold rates steady at 6.75% at the January meeting given global uncertainties.
South Africa's consumer price index is compiled by Statistics South Africa from monthly surveys of retail prices across approximately 6,600 items in six metropolitan areas.