JOHANNESBURG, April 22 – South Africa recorded a slight increase in inflation in March, as rising price pressures begin to build across the economy.
Data from Statistics South Africa showed headline consumer inflation rose to 3.1% year-on-year, up from 3.0% in February. On a monthly basis, prices increased by 0.6%, compared with 0.4% in the previous month.
While the uptick was modest, inflation is expected to accelerate more sharply in April, driven largely by a surge in domestic fuel prices linked to global market disruptions. The government has attempted to cushion consumers by temporarily reducing fuel levies, but upward pressure remains significant.
The South African Reserve Bank has maintained a cautious stance, keeping its benchmark interest rate unchanged at 6.75% during its March meeting. Policymakers signaled the need to monitor evolving risks, particularly those stemming from global energy markets.
Inflation remains within the central bank’s target range of 3% plus or minus one percentage point, but the outlook suggests growing upside risks as energy costs filter through the broader economy.
The latest data highlights the fragile balance facing policymakers, as they weigh supporting economic growth against the risk of renewed inflationary pressures.
