Consumer inflation was unchanged at 3.2% in February 2025, despite an acceleration in government controlled prices (administered prices) to 4.2%. CPI excluding government prices, slowed to 3.1%, from 3.2% (Jan-25). Water and Electricity prices have for example consistently increased above the target range, leaving consumers and businesses to carry the burden of absorbing these higher costs in order to maintain inflation within the target range set by the South African Reserve Bank, or pay the price of higher interest rates. To lower the target range prematurely, while government continues to consistently increase prices above the target range will have dire consequences for the South African consumer. Comparison to our Peers that have lower target ranges are not comparable given South Africa’s structural imbalances, infrastructure deficits, low economic growth and high unemployment rate.
