SA’s Inflation Rate Drops in March After Five-Month Climb
South Africa’s inflation rate dropped to 2.7% in March, marking the first decline in five months. This follows a 3.2% rate recorded in February, according to the latest data released by Statistics South Africa.
The decline was largely influenced by a reduction in fuel prices during the reporting period. The fuel index registered a 0.4% decrease in March, which pushed the annual rate further into negative territory—from -3.6% to -8.8%.
Another contributing factor to the slower pace of inflation was the lower-than-anticipated increase in education-related costs, which are typically assessed annually in March.
The education price index rose by 4.5%, a smaller increase compared to the 6.4% rise seen in 2024. Within this category, school fees went up by 5%, while tertiary education institutions implemented an average increase of 3.7% for 2025.
These combined factors played a key role in easing inflationary pressure, offering some relief to consumers after months of rising prices.