South Africa's November Inflation Eases to 3.5%, Remaining Within Reserve Bank's New Target Band
PRETORIA, 17 December 2025. South Africa's consumer price index rose by 3.5% year on year in November 2025, down from 3.6% in October, according to data released by Statistics South Africa on Wednesday, maintaining inflation within the South African Reserve Bank's new point target of 3% plus or...
South Africa's November Inflation Eases to 3.5%, Remaining Within Reserve Bank's New Target Band
PRETORIA, 17 December 2025. South Africa's consumer price index rose by 3.5% year on year in November 2025, down from 3.6% in October, according to data released by Statistics South Africa on Wednesday, maintaining inflation within the South African Reserve Bank's new point target of 3% plus or minus one percentage point.
The main contributors to the 3.5% annual rate were housing and utilities, which rose 4.5% year on year and contributed 1.1 percentage points to the headline figure, and food and non-alcoholic beverages, which rose 4.4% and contributed 0.8 of a percentage point. Core inflation, which excludes food, non-alcoholic beverages, fuel, and energy, was 3.2% in November, up from 3.1% in October, reflecting underlying price pressures in services.
Monthly consumer prices rose 0.3% between October and November 2025, with the increase driven primarily by seasonal food price pressures and higher education costs as the academic year cycle progressed.
The November reading continued a trend of moderating inflation that saw the annual average for 2025 settle at approximately 3.2%, well within the Reserve Bank's previous 3%-6% target band and comfortably near the midpoint of the new 3% plus or minus one percentage point framework adopted with effect from November 2025. The SARB cited the favourable inflation trajectory as a key factor in its decision to cut the repo rate by 25 basis points to 6.75% at its November 20 meeting.
Market analysts noted that if inflation remains below 4% through the first quarter of 2026, the SARB's Monetary Policy Committee, which meets next on 29 January 2026, would likely have scope to consider a further rate reduction. The SARB had cut rates by a cumulative 150 basis points between September 2024 and November 2025.
Statistics South Africa releases monthly consumer price data approximately six to seven weeks after the reference period. The November 2025 CPI data was based on price surveys conducted during November 2025.