South Africa’s annual consumer inflation rose to 3.1% in March 2026, up from 3.0% in February, according to Statistics South Africa. The increase was driven by higher costs in education and housing, with tuition fees climbing 5.4% and housing and utilities remaining a significant contributor to overall price pressures.
The rise in South Africa’s inflation in March 2026 was largely influenced by increases in education and housing costs, according to Statistics South Africa. Education accounts for 2% of the total Consumer Price Index (CPI), and the CPI Education Services index stood at 104.50 during the latest period. The Higher Education Price Index (HEPI) reflects that education costs have been rising faster than the overall CPI for more than a decade, driven in part by staff costs that represent over half of university spending, according to HEPI reports.
Tuition fees climbed 5.4% year-on-year, with private education experiencing the sharpest rise at 7.5%, data showed.
Housing and utilities remained significant contributors to inflation, with the category weighing 23% of the total CPI. Inflation in housing and utilities was recorded at 4.8% in March 2026, slightly down from 4.9% previously, but still a key factor in overall price pressures. Six of the 13 major spending categories included in the CPI recorded increases, with housing-related costs among them, Statistics South Africa officials confirmed.
Food inflation eased slightly to 3.6% in March 2026, down from earlier levels in the year. The Food & Non-alcoholic Beverages category, which constitutes 19% of the CPI, saw deflation in several subcategories such as fruits, vegetables, cereals, and dairy products. Dairy prices have fallen for ten consecutive months, according to the latest figures. Earlier in 2026, food inflation was recorded at 4.4%, largely underpinned by a 13.5% rise in meat prices caused by the foot-and-mouth disease outbreak, Statistics South Africa noted.
Transport costs declined by 1.6% year-on-year in March 2026, maintaining negative inflation territory. This category accounts for 15% of the CPI. Despite the ongoing reduction, the pace of decline has slowed. However, this data predates the fuel price increases implemented in April 2026, which economists expect could reverse the downward trend in transport costs, sources confirmed.
Other categories contributing to inflation increases included financial services and restaurants. Miscellaneous Goods & Services, which carries a 15% weight in the CPI, alongside Alcoholic Beverages & Tobacco at 6%, Recreation & Entertainment at 5%, Household Contents, Equipment & Maintenance at 4%, and Clothing & Footwear at 4%, also saw price rises, according to the data.
Overall, goods inflation showed signs of slowing, while services inflation picked up, creating a mixed inflationary environment. The headline inflation rate of 3.1% in March 2026 remains within the South African Reserve Bank’s (SARB) 1 percentage point tolerance band around its 3% inflation target. Core inflation, which excludes food, non-alcoholic beverages, fuel, and energy, rose to 3.4% near a one-year high in January 2026, SARB reports indicated. The December 2025 inflation rate was 3.6%, up slightly from 3.5% in the previous month.
Data collection for the March 2026 inflation figures was completed before the fuel price increases in April, which may add further upward pressure to inflation in the coming months, Statistics South Africa said. The current inflation trends reflect a balance between easing pressures on goods prices and rising costs in services, particularly in education and housing sectors.
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