Inflation Falls to 3% in February

South Africa’s annual consumer price inflation slowed to 3.0% in February 2026, down from 3.5% in January, according to Statistics South Africa.

On a month-on-month basis, the Consumer Price Index (CPI) increased by 0.4%, reflecting a more moderate rise compared to the same period last year.

The main contributors to the annual inflation rate were housing and utilities at 4.8%, followed by food and non-alcoholic beverages at 3.7%, and insurance and financial services at 4.7%. These categories continue to place pressure on household budgets despite the overall slowdown.

Inflation for goods dropped to 1.9% from 2.7% in January, while services inflation eased to 3.8% from 4.2%, indicating a broader cooling in price increases across the economy.

In provincial data, the Eastern Cape recorded a 0.4% monthly rise and a 2.4% annual increase in CPI.

According to Patrick Kelly, the lower inflation print can largely be attributed to delayed medical aid increases, declining fuel prices, and slower growth in healthcare service costs.

Medical schemes, which typically adjust prices at the start of the year, delayed some increases in 2026. As a result, the average rise among those that did adjust was 6.4%, significantly lower than the 10.5% recorded in February 2025. Kelly cautioned that delayed adjustments could still push inflation higher later in the year.

Fuel prices also played a key role, declining by 3.1% month-on-month and contributing to an annual drop of 10.1% in the fuel index. Meanwhile, healthcare service costs rose more slowly, with a 3.8% monthly increase compared to 5% a year ago.

Food prices showed mixed trends. Meat inflation eased to 12.2%, with a monthly decline of 1.1%—the first drop in nearly a year. Prices for beef, pork, and lamb all decreased during the month. Oils and fats also saw a slight monthly decline of 0.4%.

However, alcoholic beverages bucked the trend, with inflation rising to 5.1% annually. Beer prices increased by 1.2% during the month, while brandy, ciders, and spirit coolers also recorded notable gains.

Stats SA noted that while inflation has moderated, several factors—including potential delayed price adjustments—could influence the outlook in the coming months.