South Africa's Annual Inflation Holds Steady at 3.2% in February, Monthly Rate Accelerates

South Africa's annual consumer inflation remained stable at 3.2% in February 2025, matching January's figure. However, the monthly inflation rate saw a sharp increase, jumping to 0.9% from 0.3%. This acceleration reflects rising cost pressures in key sectors, including fuel, financial services, and food. Fuel prices rose by 3.9% month-on-month following a petrol price increase. Food inflation also accelerated to 2.8% year-on-year, driven by cereals, fruits, nuts, and non-alcoholic beverages. Insurance and financial services costs spiked by 6.0% month-on-month, with insurance alone surging 7.7%. Health costs also climbed 2.6% month-on-month, particularly for health services. While inflation remains within the Reserve Bank's target range of 3%-6%, the monthly acceleration could influence the Bank's upcoming interest rate decision.