Pretoria, South Africa – South Africa’s annual consumer inflation fell to 3 percent in February 2026, down from 3.5 percent in January and matching the South African Reserve Bank’s target.
Statistics South Africa reported a 0.4 percent monthly rise, showing broad price moderation across goods and services. The data eases pressures in Africa’s most industrialized economy amid global risks.
Housing and utilities led contributors at 4.8 percent, adding 1.1 points to headline inflation. Food and non-alcoholic beverages rose 3.7 percent for 0.7 points. Insurance and financial services climbed 4.7 percent, contributing 0.5 points.
Goods inflation slowed to 1.9 percent from 2.7 percent; services eased to 3.8 percent from 4.2 percent. This marks the first on-target reading since June 2025. Fuel dropped 10.1 percent annually, aiding the decline.
Okay News reports analyst caution. Standard Bank’s Elna Moolman noted the figures predate Iran war oil spikes and rand weakness, both inflationary. Reuters economists shifted from March rate cut bets to holds amid tensions.
SARB meets March 26 with benchmark steady eyed. Core inflation hit 3 percent, a seven-month low. Nigeria’s rate stays high at 15.06 percent by contrast.
Geopolitical shocks threaten rebound. Growth relies on energy stability. Policymakers balance relief with external buffers.
