Cape Town – South Africa’s annual inflation rate increased slightly to 3.1% in March 2026, up from 3.0% in February, according to the latest consumer price index (CPI) data released by Statistics South Africa.
On a monthly basis, prices rose by 0.6% between February and March.
Six of the 13 CPI categories recorded higher annual inflation rates, including restaurants and accommodation services, education, transport, housing and utilities, information and communication, and recreation, sport and culture.
Education costs drive increase
Education emerged as a key driver, with tuition fees rising by 5.4% in 2026, up from 4.5% the previous year. Primary and secondary education increased by 6.2%, while tertiary education rose by 4.2%. Private secondary schools recorded the sharpest increase at 7.5%.
Transport remains in deflation
Transport prices remained in deflationary territory, although the annual rate rose from -2.1% in February to -1.6% in March. Fuel prices were 8.7% lower compared with a year earlier, contributing to the overall decline.
#SAInflation nudges higher in March 2026. Annual consumer price inflation increased to 3,1% in March from 3,0% in February.
Read more here: https://t.co/c0Qwq576h6#StatsSA #KnowYourStatsZA #CPI #GovZAUpdates pic.twitter.com/FuXnXhMkJj
— Statistics South Africa (Stats SA) (@StatsSA) April 22, 2026
However, monthly increases were recorded in passenger transport, with long-distance bus fares jumping by 20% and airfares rising by 14.3%.
Statistics South Africa noted that the March data does not yet reflect fuel price increases introduced on 1 April, which are expected to impact the next CPI release.
Food inflation continues to ease
Food and non-alcoholic beverage inflation slowed for a second consecutive month to 3.6% in March, down from 3.7% in February and 4.4% in January.
Several categories remained in deflation, including fruits and nuts, vegetables, cereal products, and dairy. Prices for items such as rice, maize meal, bread, milk and eggs declined compared to a year ago.
Meat prices also showed signs of easing, with monthly declines recorded across several beef products. However, annual meat inflation remained elevated at 11.6%, despite moderating from February.
Housing and other costs increase
Housing-related costs also rose, with rental prices increasing by 4.0% in the first quarter of 2026. Townhouses recorded the highest rental growth at 5.1%, followed by flats at 4.2% and houses at 3.7%.
Domestic worker wages increased by 3.7% over the same period.
Meanwhile, accommodation services saw a sharp monthly rise of 5.4%, pushing the annual rate to 12.2%. University boarding fees and hotel prices were among the main contributors.
Economists will be closely watching the next inflation release, which is expected to reflect the impact of recent fuel price increases on the cost of living.
Compiled by Betha Madhomu
