South Africa Sees Surprise Inflation Slowdown in August

South Africa’s annual inflation rate fell to 3.3% in August 2025 from a ten-month high of 3.5% in July and against market estimates of 3.6%. It remains comfortably within the South African Reserve Bank's target range of 3%-6%. Slower food price growth (5.2% vs 5.7% in July) and a steeper drop in fuel costs (-5.7% vs -5.5%) helped ease overall inflation. The annual core inflation rate, which excludes food, non-alcoholic beverages, fuel, and energy, rose to 3.1% in August 2025, the highest since March, from 3% in the prior month. On a monthly basis, the CPI edged down by 0.1% in August, after a 0.9% increase in the preceding month.