Housing and utilities are the largest contributor to annual inflation in December. South Africa’s annual consumer price inflation edged higher in December 2025, as housing-related costs and food prices continued to exert pressure on household budgets, Statistics South Africa said. Headline consumer price inflation rose to 3.6% year-on-year in December, up from 3.5% in November, according to the agency’s latest consumer price index (CPI) release.
Housing and utilities remainedthe largest contributor to annual inflation, while food and non-alcoholic beverages also continued to add upward pressure, the data showed. Annabel Bishop, Investec’s chief economist, noted that it was unlikely that there would be an interest rate cut next month even though inflation is expected to slow. Investec had predicted 3.5%.
Bishop said inflation is expected to drop back to the 3% inflation target this quarter. Bishop noted fuel made only a small contribution to the monthly outcome. “The fuel price saw a small 29c/litre lift, making a small 0.07% contribution to the month-on-month CPI outcome.
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Housing and utilities made a small, not unusual, 0.1% seasonal contribution as well,” said Bishop. Food inflation remained unchanged at 4.4% year-on-year in December. Bishop said global and currency dynamics continued to help contain price pressures.
“Global food prices fell 1.3% month-on-month in December, and the rand strengthened by 2.4% month-on-month against the US dollar, making a substantial contribution to keep food inflation contained,” she said. Dr Elna Moolman, head of South Africa macroeconomic research at Standard Bank Group, said inflation remained “quite benign” at the end of last year. “Consumer inflation remained quite benign at the end of last year, at 3.6% year-on-year in December from 3.5% in November,” Moolman said.
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