Free South Africa Inflation Calculator

Inflation is an increase in the general level of prices of goods and services over time. When inflation rises, each rand you have buys fewer goods and services than before – this is called a decline in purchasing power. For example, if inflation is 3.5%, something that cost R100 last year would cost R103.50 this year. In South Africa, inflation is monitored by Statistics South Africa (Stats SA) and the South African Reserve Bank (SARB), which aims to keep inflation within a 3% to 6% target range because stable inflation supports sustainable economic growth and helps households and businesses plan for the future.

The Consumer Price Index (CPI) is South Africa's official measure of inflation, published monthly by Statistics South Africa (Stats SA). It tracks the percentage change in the price of a "basket" of goods and services that South African households typically purchase. The current CPI series uses December 2024 as its base (December 2024 = 100) following the January 2025 rebase. Stats SA collects prices from shops, online retailers, and service providers across all nine provinces. The CPI basket contains 391 items grouped into 13 main categories (COICOP 2018 divisions) including Food & Non-Alcoholic Beverages, Housing & Utilities, Transport, and Insurance & Financial Services.

The CPI basket includes 391 items across 13 main COICOP 2018 categories. The largest weights are: Housing & Utilities (24.1%), Food & Non-Alcoholic Beverages (18.2%), Transport (13.9%), and Insurance & Financial Services (10.4%). These weights reflect how much South African households spend on each category – items households spend more on have larger weights. Stats SA updated these weights in January 2025 using data from the 2022/23 Income and Expenditure Survey (IES). The most recent basket review added items like air fryers, e-hailing services, and streaming subscriptions while removing landline telephone fees and satellite TV decoders.

The South African Reserve Bank (SARB) aims to keep inflation within a 3% to 6% target range. Unlike some central banks that have a point target (like the ECB's 2%), South Africa uses a target band, giving the SARB flexibility to accommodate economic shocks while maintaining price stability. The SARB has indicated it prefers inflation closer to the 4.5% midpoint of this range. This inflation targeting framework was introduced in February 2000 and provides a nominal anchor for inflation expectations, guiding monetary policy decisions through the repo rate.

As of November 2025, the annual CPI inflation rate in South Africa was 3.5%, down from 3.6% in October. This is comfortably within the SARB's 3-6% target range. The largest contributors to annual inflation were: Housing & Utilities (+4.5%) – driven by electricity costs; Alcoholic Beverages & Tobacco (+4.6%); Food & Non-Alcoholic Beverages (+4.4%) – particularly meat prices (+12.2%) due to foot-and-mouth disease outbreaks; and Insurance & Financial Services (+3.8%). Transport inflation cooled significantly to just +0.7% as fuel prices stabilised. Monthly, consumer prices fell by 0.1% between October and November 2025.

South Africa publishes two main inflation measures: Headline CPI and Core CPI. Headline CPI includes all items in the basket, while Core CPI excludes volatile items – specifically food, non-alcoholic beverages, fuel, and energy. Core inflation shows the underlying trend in price changes without temporary spikes from volatile items. In November 2025, headline inflation was 3.5% while core inflation was 3.2%. The SARB monitors both measures but targets headline inflation. When core inflation is lower than headline (as in November 2025), it suggests that volatile items like food and fuel are temporarily pushing up the overall rate.

Inflation has three main causes: 1) Demand-pull inflation – when demand for goods/services exceeds supply, allowing businesses to raise prices. 2) Cost-push inflation – when production costs rise (e.g., wages, energy, raw materials), businesses pass these on to consumers. 3) Inflation expectations – if people expect prices to rise, they may demand higher wages or raise prices preemptively, making inflation self-fulfilling. Recent South African inflation has been driven by electricity price increases (+8.2%), food prices (+4.4% especially meat at +12.2% due to foot-and-mouth disease), and housing costs. As an emerging market economy, South Africa is also significantly affected by exchange rate movements – a weaker rand makes imports more expensive, pushing up inflation.

The SARB's primary tool is the repo rate – the interest rate at which commercial banks borrow from the central bank. When inflation is too high, the SARB raises the repo rate, making borrowing more expensive, reducing spending, and easing price pressures. When inflation is too low or economic growth needs support, the SARB lowers the repo rate to encourage spending. Changes in the repo rate affect the prime lending rate (currently repo + 3.5%), which directly impacts mortgage rates, car loans, and other consumer credit. The SARB's Monetary Policy Committee (MPC) meets six times a year to decide on interest rates based on inflation forecasts and economic conditions.

Housing & Utilities is the largest contributor to CPI inflation, with a weight of 24.1%. In November 2025, this category rose +4.5% annually, driven by: Electricity (+8.2%) – reflecting Eskom tariff increases approved by NERSA; Water supply & other services (+7%) – municipal rate increases; Actual rentals for housing (+4.4%); and Owners' equivalent rent (+4.3%). Electricity alone makes up about 3.4% of the CPI basket. The ongoing energy crisis and need for infrastructure investment continue to put upward pressure on utility costs, while rent increases reflect housing demand in urban areas.

Food & Non-Alcoholic Beverages inflation was +4.4% in November 2025, up from 3.9% in October. The standout driver was meat prices (+12.2%), the highest since early 2017, caused by ongoing outbreaks of foot-and-mouth disease affecting cattle farming and trade restrictions. Other notable increases include cereal products and oils & fats. With a basket weight of 18.2%, food inflation significantly impacts overall CPI. Food price inflation is driven by global commodity costs, the rand exchange rate affecting imported goods, local agricultural conditions including droughts and disease outbreaks, and rising input costs like fuel and electricity for food production and distribution.

Stats SA measures CPI across all nine provinces, with each province having a weight reflecting its share of total household expenditure. Gauteng has the largest weight at 35.87%, followed by Western Cape (18.06%), KwaZulu-Natal (14.58%), Eastern Cape (7.66%), Mpumalanga (6.41%), Limpopo (6.09%), North West (5.38%), Free State (4.14%), and Northern Cape (1.82%). Provincial weights were updated in January 2025 based on the 2022/23 Income and Expenditure Survey. Stats SA publishes provincial CPI data for the all-items index and food index, allowing comparisons of inflation experiences across different regions.

Stats SA publishes the CPI monthly, typically in the third week following the reference month. Prices are collected throughout each month from various outlets. The November 2025 CPI release achieved a 99.2% response rate from surveyed outlets. Stats SA collects prices from shops, online retailers, and receives transaction data directly from large retail chains. The CPI covers 21 collection areas across South Africa's urban areas. This frequent publication schedule allows the SARB, government, and businesses to monitor inflation trends closely for policy and planning decisions.

Not exactly. The CPI measures price changes for a fixed basket of goods and services, while the cost of living relates to the amount of money needed to sustain a certain standard of living. For example, if beef prices rise, the CPI records this increase, but a cost-of-living measure might account for households switching to cheaper chicken. The CPI is an average covering all household types – from urban to rural, high to low income, different ages and situations. Stats SA publishes inflation data by expenditure decile (income group), showing that lower-income households often experience higher inflation because food and transport make up a larger share of their spending. Stats SA provides tools to help people calculate their personal inflation rate.

As of late 2025, the SARB's key interest rates are: Repo rate: 7.50%; Prime lending rate: 11.00% (repo + 3.5%). The repo rate is the primary policy rate that steers monetary policy. The SARB began a rate-cutting cycle in late 2024 as inflation moderated, reducing the repo rate from its peak of 8.25%. The Monetary Policy Committee (MPC) considers inflation forecasts, economic growth, exchange rate movements, and global financial conditions when setting rates. With inflation at 3.5% – comfortably within the 3-6% target range – there may be scope for further gradual rate cuts if inflation remains contained.

South Africa's highest recorded annual CPI inflation was 18.5% in 1986 during a period of economic sanctions and political instability. Inflation remained in double digits for much of the 1980s and early 1990s, peaking again at 15.8% in 1991. Since the introduction of inflation targeting in 2000, the highest rate was 13.5% in 2002 following the rand crisis. More recently, inflation peaked at 7.8% in July 2022 during the global post-pandemic energy and supply chain crisis. Annual average inflation was 6.9% in 2022 – the highest since 2009. In contrast, 2024's average of 4.4% was the lowest since the pandemic year of 2020 (3.3%).

Inflation expectations are what households, businesses, and financial markets believe will happen to prices in the future. They matter because expectations can become self-fulfilling. If workers expect high inflation, they'll demand higher wages; if businesses expect costs to rise, they'll raise prices preemptively. This "inflation psychology" can entrench high inflation. The SARB closely monitors expectations through the Bureau for Economic Research (BER) Inflation Expectations Survey. The SARB aims to keep expectations "anchored" within the 3-6% target range. Well-anchored expectations make it easier to control actual inflation and allow for a more stable economic environment.

Inflation erodes the real value of money. If you have R10,000 in a savings account earning 6% interest but inflation is 3.5%, your money's purchasing power only increases by about 2.5% per year (the "real return"). To maintain purchasing power, your investments need to earn a return above the inflation rate. With the prime rate at 11% and inflation at 3.5%, savers can currently earn positive real returns on many savings products. However, during high inflation periods (like 2022's 6.9%), real returns can turn negative. Money market funds, fixed deposits, and inflation-linked bonds are popular options for South Africans seeking to protect savings from inflation erosion.

South Africa's social grants, including the Old Age Pension, Disability Grant, Child Support Grant, and others, are adjusted through the annual National Budget process rather than automatic indexation. The government considers CPI inflation, fiscal conditions, and poverty levels when setting grant amounts. Recent budgets have generally included increases to help maintain purchasing power. The CPI is commonly used in wage negotiations and is referenced by labour unions and employers when discussing salary adjustments. Some private pension funds may have inflation-linked features, and the government issues inflation-linked bonds (ILBs) that adjust returns based on CPI, protecting investors from inflation.

According to the SARB and National Treasury forecasts, South African inflation is expected to average around 3.8-4.0% in 2025, 4.5-4.7% in 2026, and approximately 4.5% in 2027. These forecasts assume inflation remains within the 3-6% target range. Key risks to the inflation outlook include electricity tariff increases, exchange rate volatility affecting import prices, food price pressures from weather and disease events, and global oil price movements. The SARB's inflation projections guide monetary policy decisions – if inflation is forecast to remain near the midpoint of the target, there may be room for gradual interest rate reductions to support economic growth.

An inflation calculator helps you understand how prices have changed over time. You can use it to: 1) Calculate what something that cost R100 in 1990 would cost today (adjusting for inflation); 2) See how much your salary needs to increase to maintain the same purchasing power; 3) Understand the real value of historical prices. South Africa experienced an average inflation rate of about 5% per year over the past decade, meaning prices roughly double every 14 years. Stats SA provides tools for calculating personal inflation rates, and our free South Africa inflation calculator uses official Stats SA data to help you understand how inflation affects your money over time.