Headline inflation registered 4.4% in August after 4.3% in July. Annual core inflation eased to 4.1% from 4.2%. On a monthly basis, both headline and core prices were unchanged.
Food and non-alcoholic beverages posted their first uptick since November 2025, with the annual rate at 1.1% in August versus 0.9% the month before. Within food, yearly increases were notable for cereal products as well as fish and other seafood.
Conflicts tied to Iran and Ukraine are still snarling supplies of fuel, agricultural grains, and fertilizers. Brent crude is hovering around $99 a barrel, compared with an average of $85 during the central bank's July meeting. On top of that, El Niño could dent farm output, which would feed through to food inflation.
Bloomberg Economics, in analysis by Yvonne Mhango, projects headline inflation will strengthen in the coming months due to rising transport costs, then level off, with favorable base effects from the second quarter of 2027 pulling inflation toward the South African Reserve Bank's 3% target by the end of 2027.
Goldman Sachs's Andrew Matheny noted that non-core components were softer than anticipated thanks to lower fuel inflation and a slowdown in electricity price growth. He added that "core inflation was broadly stable, with core goods prices picking up somewhat but services inflation remaining contained," and kept forecasts for average inflation at 4.3% in 2026 and 3.4% in 2027.
Inflation updates remind us that steady, thoughtful planning protects and grows savings. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.
Most economists in a Bloomberg poll expect Governor Lesetja Kganyago to raise the policy rate to 7.25% from 7%, with the decision due at around 3 p.m. in Pretoria. For your wallet, that backdrop says borrowed money may cost a bit more while inflation looks contained for now, so it is worth keeping an eye on how fuel and food trends show up in everyday prices.
When prices shift, keeping a long term focus helps preserve and expand wealth. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.
