The consumer price inflation rose in December, ending the year at 3.6% from 3.5% last November.
The inflation jumped as higher food prices continued to weigh on household budgets. Prices increased by 0.2% between November and December.
This increase remains within the Reserve Bank’s inflation target of 3% with the tolerance band of 1%.
Meat inflation increased by 12.6% in December from 12.2% in November. In December 2024, meat prices were dropping by -0.4%.
Beef steak inflation also rose sharply, from 28.4% in November to 29.4% in December. Other red meat products also recorded faster price increases, including sausages, boerewors, mutton, and pork.
Food and non-alcoholic beverage inflation remained unchanged at 4.4% in December.
Prices for non-alcoholic beverages increased by 4.2% over the year, up from 3.7% in November. Cold beverages saw a notable increase, with inflation reaching 2.2% in December.
According to Statistics South Africa, 2025 had the lowest inflation average in 21 years at 3.2%.
The last time inflation was lower was in 2004, when it stood at 1.4%. Before that, the most recent year with average inflation below 3.2% was 1969 at 3%.
Actual rents on the rise
“The milk, other dairy products, and eggs category remained in deflationary territory at -1.1%, mainly led by cheaper milk products. The annual rate for fresh-cream milk, for example, declined further to -1.5% from -1.2% in November.
“Cheese continues to buck the trend. Cheddar prices rose by 9% in the 12 months to December, higher than the 4.9% rise recorded in November,” reads the report.
Data from the quarterly housing rent survey released in December shows that actual rents increased by 0.8% in the fourth quarter of 2025 compared with the third quarter, easing from a 1.1% rise in the previous quarter.
Over the year, actual rents were up by 3.7%, with the biggest increases seen in townhouses, followed by flats and then houses.
Wage growth for domestic workers slowed slightly as their pay increased by 3.8%, compared with a 4.1% rise recorded at the end of 2024.
Fuel price inflation remained modest, as prices were 0.6% higher through the year; diesel cost rose more than petrol.
However, long-distance bus fares surged by 38.6% between November and December, reflecting heavy travel demand during the festive period.
