South Africa’s annual inflation rate inched up to 3.6% in December 2025 from 3.5% in the prior month, in line with analysts' expectations. The headline inflation rate remains within the 1 percentage point tolerance band of the SARB's new 3% target. The main contributors to the increase were housing & utilities (4.9%), food & non-alcoholic beverages (4.4%) and insurance and financial services (7%). The core inflation rate, which excludes food, non-alcoholic beverages, fuel, and energy, rose to 3.3% in December, the highest in ten months, from 3.2% in November. On a monthly basis, the CPI rose by 0.2%, after decreasing by 0.1% in the previous month. The average inflation rate for 2025 was 3.2%, marking the lowest level in 21 years and below the central bank’s 3.3% forecast.