South Africa’s annual consumer inflation rose to 4.5% in September, Statistics South Africa (Stats SA) said on Wednesday. Higher transport costs were the main reason for the increase.
Inflation was 4.4% in August and 4.3% in July. This means it has now gone up for two months in a row.
Stats SA said the Consumer Price Index (CPI) rose by 0.4% between August and September. Prices had not changed between July and August.
The CPI tracks the average price change of a basket of goods and services. Some items in the basket are rising much faster than 4.5%, while others are getting cheaper.
Transport had the highest inflation, at 10.8% a year. Stats SA said it added 1.5 percentage points to the 4.5% rate.
Fuel was the biggest driver. The fuel price index went up by 6.2% from August to September. It was 27.9% higher than a year earlier.
Petrol cost 25% more than a year ago, according to Stats SA. Diesel was 46% more expensive over the same period.
Passenger transport inflation reached 12.3% in September. Airfares rose by 18.6%, long-distance bus fares by 14.1% and minibus taxi fares by 13.8%. Courier services went up by 6.8%.
Housing and utilities recorded inflation of 5.2%, adding 1.3 percentage points to the headline figure. Insurance and financial services rose by 5.4%, adding another 0.6 of a percentage point.
Tenants saw some relief. Stats SA said inflation for actual rentals slowed to 3.9% in the third quarter of 2026, down from 4.1% in the second quarter.
Rent for flats rose by 4.0%, townhouses by 3.9% and houses by 3.8%. All three were below the headline CPI rate.
Food prices stayed fairly stable. Food and non-alcoholic drinks inflation was 1.2% in September, up from 1.1% in August and 0.9% in July.
Meat inflation slowed to 0.7%, its lowest yearly rate since March 2025. Some beef products, including stewing beef, beef mince and steak, were cheaper than a year earlier.
Cereal prices were 1.9% lower than a year ago. Maize meal was 8.6% cheaper year on year.
The South African reported that a household that spent R20 000 a month a year ago would need about R900 more each month at 4.5% inflation. The real effect differs from home to home, depending on how much a family spends on transport, housing and insurance.
Nedbank had forecast inflation of 4.8% for September, mostly because of higher fuel costs. The bank warned that rising fuel prices could keep pushing inflation up.
The South African Reserve Bank has said it expects inflation to stay high into 2027 because of fuel and services costs. The bank expects inflation to return to its 3% target towards the end of 2027.
Source: this article is based on reporting by The South African. Image: The South African. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.