South African inflation slows to 3.5 percent in January as rate cut hopes grow

Consumer price growth slowed slightly last month keeping inflation within the central bank target range. Economists expect further interest rate cuts this year.

洞察:
South Africa's headline consumer inflation slowed to 3.5% year on year in January, down from 3.6% in December, according to data released by Statistics South Africa on February 18, 2026. The latest reading for ZA ZAZA keeps headline inflation within the central bank's 1-percentage-point tolerance band around its 3% target. This slowdown arrives ahead of the central bank's March 26 rate-setting meeting and is expected to inform deliberations regarding possible policy rate cuts.
A shopper looks for items in the dairy section of a supermarket in Johannesburg, South Africa, May 20, 2025. REUTERS/Siphiwe Sibeko
A shopper looks for items in the dairy section of a supermarket in Johannesburg, South Africa, May 20, 2025. REUTERS/Siphiwe Sibeko
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