South Africa closed out the year with consumer inflation edging slightly higher, as the latest figures showed prices rising modestly in December while the broader picture still points to historically low inflation for 2025, Cape {town} Etc reports.
Data shows consumer price inflation increased to 3,6% in December, up marginally from 3,5% in November, with prices rising by 0,2% month-on-month. Despite the uptick, the average inflation rate for the 2025 calendar year settled at 3,2%, marking the lowest annual average in 21 years and the first time since 1969 that inflation remained below this level for a full year.
Food and non-alcoholic beverages held steady at an annual rate of 4,4% in December, but sharp differences emerged within the basket. Meat continued to place pressure on household budgets, with inflation climbing to 12,6% from 12,2% the previous month. This marks a dramatic turnaround from December 2024, when meat prices were still declining.
Beef remained one of the biggest drivers, with steak prices rising by 29,4% year-on-year in December, up from 28,4% in November. Other red meat products also recorded stronger increases, including sausages, boerewors, mutton and pork, all of which accelerated over the final month of the year.
Cereal products saw inflation move higher, rising to 2,1% in December from 1,7% in November. Everyday staples such as brown bread, white bread and spaghetti all showed faster annual price growth. In contrast, maize meal inflation eased for a second straight month, slowing to 9,5%.
Dairy and eggs continued to provide some relief, remaining in deflation at -1,1%. Milk prices declined further, while cheese stood out as an exception, with cheddar inflation rising to 9,0%. Oils and fats recorded a slower annual increase of 4,6%, helped by cheaper olive oil and softer sunflower oil prices.
Non-alcoholic beverage inflation climbed to 4,2%, with cold drinks showing a noticeable rise. Outside food, rental growth cooled slightly in the fourth quarter, with annual rental inflation measured at 3,7%. Domestic worker wages increased by 3,8% year-on-year, while fuel prices rose modestly, led mainly by diesel.
Transport costs were mixed, with long-distance bus fares jumping sharply month-on-month in December, though still lower than a year ago. Accommodation prices moved in the opposite direction, with hotel rates declining during the month.
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