Consumer Inflation Eases in November, Offering Room for Rate Cuts

South Africa’s annual consumer inflation eased to 3.5% in November, down slightly from 3.6% in October.

This is comfortably in the new 2-4% inflation target band recently adopted by the South African Reserve Bank (SARB).

The main contributors behind November’s softer inflation were a slowdown in transport costs, which came in at 0.7%, from 1.5% in October. Overall annual goods inflation eased to 2.9% from 3.1%.

Housing and utilities inflation, however, remained steady at 4.5%, while the cost of food and non-alcoholic beverages edged higher to 4.4% in November, up from 3.9% in October. Services inflation ticked up to 4.1% from 4%.

According to Bheki Mahlobo, economics and policy editor at The Common Sense, the latest figures give the SARB “more room to cut rates in early 2026”. Mahlobo explained that, “Stable South African consumer prices, falling global interest rates, and a stronger rand point towards more rate cuts in South Africa.”

He added that: “This will continue to take pressure off consumers and businesses. The prime interest rate started at 11% at the beginning of the year, is now at 10.25%, and could decline further in the new year.”