FX.co ★ South Africa Inflation Rises to 4-Month High

In June 2025, South Africa experienced a rise in its annual inflation rate to 3%, marking the highest level observed in four months and up from 2.8% in the preceding two months. This increase was primarily driven by rising costs in various sectors: food and non-alcoholic beverages saw a price hike of 5.1% compared to 4.8% in May; alcoholic beverages and tobacco prices rose by 4.4% versus the previous 4.3%; health service costs increased to 4.6% from 4.4%; and prices for information and communication expanded by 1.1% up from 1%. Additionally, the recreation, sport, and culture segment observed a 2% increase from 1.7%. The rates for restaurants and accommodation services grew to 2% from 1.8%, while personal care and miscellaneous services edged up to 1.8% from 1.7%. Conversely, there was a slowdown in the rate of price increases for housing and utilities, which fell to 4.4% from 4.5%, and for furnishings, household equipment, and maintenance, which declined to 1.1% from 2%. Transportation costs also dropped, though at a less pronounced rate, decreasing by 3.3% compared to a previous 4.8% drop. On a monthly scale, the Consumer Price Index (CPI) rose by 0.3%, following a 0.2% increase in May. Meanwhile, the annual core inflation rate slightly decreased to 2.9% in June—the lowest level recorded since April 2021—down from the previous month's 3%.