South Africa’s inflation rate rose slightly to 3.4% in September
The headline inflation rate in South Africa rose to (3.4%) on an annual basis last September, A slight increase from (3.3%) in August, according to data from the South African Statistics Authority today, Wednesday.
Despite this increase, the reading came below the average expectations of (3.5%); Which opened the door to widespread speculation that the central bank was close to resuming the policy of monetary easing and lowering interest rates again.
Food and beverages on the rise
The data showed that the housing and utilities sector, along with food and beverages, were among the most prominent drivers of the slight increase in prices, as both sectors recorded Inflation rate reached (4.5%) on an annual basis in September.
On the other hand, the slowdown in food prices, whose inflation rate declined from (5.2%) to (4.5%), contributed to easing general inflationary pressures.
Although inflation is still within the official target range (3.6%), economists believe that the continued slowdown in the pace of rise Prices.
Rate reduction
The central bank had reduced Interest rate – three times since the beginning of 2025 – before temporarily halting this policy at its last meeting in September to evaluate the impact of previous cuts.
The South African Reserve Bank is expected to announce its expected decision on interest rates at its next meeting on November 20, in a move that is widely anticipated by markets and investors, in light of increasing indicators that support the trend of monetary easing. Again.
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