South Africa: Inflation falls below target for first time in almost four years in October
Latest reading: Inflation came in at 2.8% in October, down from September’s 3.8%. October’s result marked the weakest inflation rate since February 2021. The print surprised markets to the downside and was the first time inflation fell below the South African Reserve Bank’s 3.0–6.0% target band since February 2021. Looking at the details of the release, the decline was broad-based, with reduced price pressures recorded for housing and utilities, food and non-alcoholic beverages, and transportation.
Accordingly, the trend pointed down, with annual average inflation falling to 4.8% in October (September: 5.1%). Meanwhile, core inflation edged down to 3.9% in October from September’s 4.1%.
Finally, consumer prices fell 0.09% in October over the previous month, swinging from the 0.09% rise seen in September. October’s result marked the weakest reading since November 2023.