South Africa’s headline inflation moderates

The South African government has welcomed the latest Consumer Price Index (CPI) figures, which show that headline inflation eased in January.

According to Statistics South Africa (Stats SA), headline inflation moderated from 3.6% in December 2025 to 3.5% in January 2026. This downward trend provides a stable foundation for the domestic economy at the start of the year.

“The easing in inflation reflects a combination of stable food prices and lower fuel costs. This contributes to a generally contained price environment at the start of the year,” the Government Communication and Information System (GCIS) said.

Food price inflation remained steady overall, with several staple items recording slower increases or price declines. Products such as cereals, rice, dairy, and eggs showed signs of moderation, providing relief to households.

Furthermore, fuel prices declined on both a monthly and annual basis, supporting the broader moderation in inflation. The decline in fuel prices also contributed positively to easing transport-related costs.

“Overall, the January outcome indicates that inflation remains relatively stable. Government continues to implement measures to support food security, enhance market monitoring, strengthen competition, and protect vulnerable households from rising costs,” the GCIS said.

The GCIS said the government will continue to monitor price developments closely and act, where necessary, to safeguard consumer welfare and support economic growth.

SAnews.gov.za