CPI cools as food, fuel, and medical aid hike delay eases pressure
Statistics South Africa says that food prices slowed, with items like rice, bread and meat becoming slightly cheaper.
Consumer price inflation dropped to 3% in February, down from 3.5% in January.
CPI rose slightly by 0.4% compared to the previous month.
Chief Director for Price Statistics, Patrick Kelly said on Wednesday that factors, including delayed medical aid increases, pushed inflation lower.
Medical aid rate increase delays ease inflation pressure
However, Kelly warned that could change later this year.
"First, there was a delay in implementing some new medical aid rates. Most medical schemes increase prices at the beginning of the year and are surveyed by Stats SA in February, resulting in a higher-than-average monthly rate.
“In February 2026, however, not all medical schemes had adjusted their contributions, resulting in a lower monthly change than would otherwise have been the case. Those schemes that implemented increases contributed to an average rise of 6,4% in health insurance, lower than the 10,5% increase recorded in February 2025.
"Health insurance has a relatively large weight of 6,2% in the inflation basket, so the delayed implementation of medical aid contributions in February had a notable impact on the headline rate. If medical scheme contributions are implemented later in the year, these changes will most likely affect the headline rate."
Kelly added that food prices slowed, with items like rice, bread and meat becoming slightly cheaper.
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Food and meat prices decline in February CPI data
"Softer food and non-alcoholic beverages (NAB) inflation also contributed to the lower CPI print in February. The annual rate for food and NAB declined to 3,7% from 4,4% in January. The monthly change was -0,3%. Five of the 10 subgroups recorded negative month-on-month changes, while four registered negative annual changes.
“Cereal products entered deflationary territory at -0,5%, down from 0,6% in January. White rice is 12,5%, spaghetti 0,5%, and brown bread 0,1% cheaper than a year ago.
"Those who enjoy a weekend braai can breathe a little easier. Meat inflation eased to 12,2% from 13,5% in January. The monthly rate was -1,1%, the first decline in almost a year. Beef products recorded large monthly price decreases, including beef offal (-4,0%), stewing beef (-3,7%), beef mince (-3,2%) and beef steak (-2,6%). Other notable meat products that were cheaper include pork (-1,6%) and lamb & mutton (-1,4%)."
Fuel price drop also contributed to lower inflation
"Cooking oil prices were also down. The price index for oils and fats declined by 0,4% between January and February. The annual rate was 4,0%, unchanged from January.
“Lower monthly prices were recorded for olive oil (-2,1%), sunflower oil (-0,6%) and margarine spread (-0,4%)."
Kelly says fuel prices were also a factor, having dropped by 3.1% to bring overall costs down.
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