South Africa’s annual inflation rate fell for the second month to 3% in February 2026, the lowest since June 2025, slightly below market forecasts of 3.1%. The continued slowdown was largely driven by a 2.1% drop in transportation prices, following a 0.2% fall the previous month, reflecting a sharper decline in fuels (-10.1% vs -3.7%). Moreover, prices of food & non-alcoholic beverages rose at a slower 3.7%, compared to 4.4% in January. On the other hand, price increases were most notable for alcoholic beverages & tobacco (5% vs 4.5%); housing & utilities (4.8% vs 4.8%); restaurants & hotels (3.8% vs 3.5%). The annual core inflation rate, which excludes food, non-alcoholic beverages, fuel, and energy, eased to a seven-month low of 3% in February, down from January's 3.4%. On a monthly basis, the CPI rose by 0.4%, after a 0.2% increase in the prior month.