SA’s Inflation Eases to 3.0% in February 2026, Fuel and Food Prices Drive Relief

On a month-on-month basis, CPI rose by 0.4%, indicating that price pressures remain subdued and manageable across key sectors of the economy.

Pretoria, March 2026:South Africa’s inflation trajectory continues to show encouraging moderation, with annual consumer price inflation (CPI) easing to 3.0% in February 2026, down from 3.5% in January, signalling sustained progress in stabilising prices and easing cost-of-living pressures.

According to the Government Communication and Information System (GCIS), the latest figures reflect a combination of declining fuel costs and easing food prices, offering relief to households amid broader economic adjustments.

Monthly Inflation Remains Contained

On a month-on-month basis, CPI rose by 0.4%, indicating that price pressures remain subdued and manageable across key sectors of the economy.

Economists view this moderate monthly increase as a sign of balanced demand and effective inflation management policies.

Fuel Prices Lead the Decline

A major contributor to the lower inflation rate was a sharp drop in fuel prices:

• Fuel prices declined by 3.1% month-on-month

• The fuel index recorded a 10.1% year-on-year decrease

This decline has helped reduce transportation and logistics costs, indirectly easing prices across other sectors.

Food Inflation Falls After Four-Month Rise

In a significant development for consumers, food inflation slowed to 3.7% in February, down from 4.4% in January, marking its first decline in four months.

Price relief was observed across essential food categories, including:

• Cereals

• Meat products

• Cooking oils

This easing is particularly impactful for lower-income households, where food constitutes a large share of expenditure.

Mixed Trends in Other Categories

While overall inflation remained under control, some categories saw moderate increases:

• Alcoholic beverages and select discretionary goods recorded price upticks

• However, these increases were not enough to offset broader declines

GCIS noted that the overall inflation outlook remains “contained and within a manageable range.”

Government Reaffirms Commitment to Stability

The government emphasized that it will:

• Continue to closely monitor price developments

• Implement measures to protect consumers from volatility

• Support inclusive economic growth

Positive Outlook for the Economy

With inflation easing and key cost drivers stabilising, the data offers a positive macroeconomic signal, potentially supporting:

• Consumer confidence

• Policy flexibility

• Economic recovery momentum

Sustained moderation in both fuel and food prices will be critical in maintaining this trend in the coming months.