South Africa ended 2025 with its lowest average inflation rate in more than two decades, according to the latest Consumer Price Index (CPI) figures. Headline inflation increased slightly in December to 3.6%, up from 3.5% in November, while prices rose by 0.2% month-on-month. Despite this marginal increase at the end of the year, average inflation for 2025 settled at 3.2%, the lowest level since 2004. The last time average inflation was lower than this was in 1969.
Food and non-alcoholic beverage inflation remained unchanged at 4.4% in December, although price pressures varied across categories. Meat inflation continued to accelerate, rising to 12.6% from 12.2% in November, a sharp shift from deflation recorded in December 2024. Beef prices remained particularly high, with beef steak inflation climbing to 29.4% in December. Other red meat products, including sausages, boerewors, mutton and pork, also recorded notable increases.
Cereal product inflation rose to 2.1% in December, with higher prices recorded for staple items such as brown bread, white bread and spaghetti. Maize meal inflation, however, slowed for a second consecutive month to 9.5%. The milk, dairy products and eggs category remained in deflation at -1.1%, largely due to lower milk prices, although cheese prices continued to rise, with cheddar inflation increasing to 9.0% over the year.
Overall, the latest inflation data points to a year of subdued price growth in South Africa, providing some relief to consumers, even as rising food costs, particularly meat prices, continue to strain household budgets.
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