Inflation Eases to 3.5% in January as Food, Fuel Prices Stabilise

Government said the moderation reflects stable food prices and declining fuel costs, contributing to a contained price environment at the start of the year.

South Africa’s headline inflation edged lower in January 2026, easing to 3.5% from 3.6% in December 2025, according to the latest Consumer Price Index (CPI) figures released by Statistics South Africa (Stats SA).

Government said the moderation reflects stable food prices and declining fuel costs, contributing to a contained price environment at the start of the year.

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Stable Food Prices Offer Household Relief

Food price inflation remained steady overall, with several staple items recording slower increases or even price declines.

According to the Government Communication and Information System (GCIS), products such as:

• Cereals

• Rice

• Dairy

• Eggs

showed signs of moderation, offering some relief to households facing cost-of-living pressures.

Food inflation has been a key concern in recent years, particularly for low-income households that spend a larger share of income on basic necessities.

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Fuel Price Declines Support Broader Moderation

Fuel prices declined on both a monthly and annual basis in January, helping ease overall inflation.

Lower fuel costs also contributed to reduced transport-related expenses, which tend to have ripple effects across supply chains and consumer prices.

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Government Monitoring Price Developments

GCIS said the January CPI outcome indicates that inflation remains relatively stable, but government will continue to monitor developments closely.

Measures currently being implemented include:

• Supporting food security initiatives

• Strengthening market monitoring

• Enhancing competition oversight

• Protecting vulnerable households from rising costs

“Government will continue to monitor price developments closely and act, where necessary, to safeguard consumer welfare and support economic growth,” the statement said.

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Inflation Within Target Range

With headline inflation at 3.5%, price growth remains within the South African Reserve Bank’s target range of 3% to 6%, providing a relatively stable macroeconomic environment at the beginning of 2026.

The latest figures suggest that price pressures remain contained for now, although global energy prices, exchange rate movements and domestic supply conditions will continue to influence inflation trends in the months ahead.