Headline consumer inflation decreased for the first time in five months, dropping to 2.7% in March, according to the latest data released by Statistics South Africa on Wednesday.
The decline from 3.2% in February was mainly due to lower fuel prices and softer tuition inflation.
“The fuel index softened by 0.4% from February, taking the annual rate from -3.6% to -8.8%,” StatsSA said.
A litre of 95-octane petrol (inland) was R22.34 in March, down from R24.45 in the same month last year. The average diesel price declined to R22.80 compared with R24.85 in March 2024.
“Education fees are surveyed once a year in March. The price index for education increased by 4.5%, lower than the 6.4% rise in 2024,” said Stats SA.
School fees increased by 5%, a decline compared with the 6.6% price hike last year, while tertiary education institutions charged 3.7% compared with the 5.9% rise recorded in 2024.
“The annual rate for food and non-alcoholic beverages edged lower to 2.7% in March from 2.8% in February,” Stats SA said.
Vegetables, fruits and nuts, cereal products, meat and fish registered higher annual rates. Lower rates were recorded for oils and fats; hot beverages; milk, other dairy products and eggs; cold beverages; and sugar, confectionery and desserts.
Inflation for cereal products accelerated to 4.3% in March from 3.9% in February. Maize meal remains a key driver in this category, with its annual rate accelerating to 13.1% from 10.6%.
“There is some good news, however. Monthly increases for maize meal have recently slowed, from 4.8% in January to 2.4% in February and 1.4% in March.
“Coffee and tea drinkers continue to feel pain. Although the annual rate for the hot beverages category declined slightly in March, it remains in double-digit territory at 14.4%. In fact, this category has witnessed double-digit inflation in all but five of the 32 months since August 2022. Instant coffee is 18.8% and black tea 12.8% more expensive than a year ago,” said Stats SA.
Alcoholic beverages also added pressure, with prices rising on average by 2.1% between February and March. This took the annual rate to 4.7% from 4.1% in February. Annual increases were recorded for wine (up 5.3%), beer (up 4.4%) and spirits and liqueurs (up 4.3%).
Other notable price changes included housing rental for the first quarter which was surveyed in March. Actual rentals increased by 2.9% and owners’ equivalent rent by 2.4% in March 2025 compared with March 2024.
