Latest CPI figures provide room for interest rate cut: Economist
Independent economist, Elize Kruger, says the moderation in the January Consumer Price Inflation (CPI) is good news for struggling households.
CPI softened in January, edging lower to 3.5% from 3.6% in December. Statistics South Africa released the data on Wednesday that indicates that CPI has returned to its November 2025 level.
This has been attributed to stable food inflation at 4.4% for a third consecutive month and the lower fuel prices.
Kruger says the development would soon see consumers benefit further.
“Inflation started the year well under control with headline inflation coming in at 3.5%, slightly down on December 3.6% and core inflation up by a touch to 3.4% in January compared to 3.3% in December. Overall, inflation remains well within the tolerance band of the reserve bank, the 3% +one, and from that point of view, there’s no pressure on interest rates to go up. If anything, there’s still room for interest rates to come down, and we should hopefully see that in the next six months that the further cutting of interest rates could be on the table.”
#SAInflation || Annual consumer price inflation softened in January, edging lower to 3,5% from 3,6% in December.
Listen here for more: https://t.co/EaOZIKdaTN#StatsSA #KnowYourStatsZA #CPI #GovZAupdates pic.twitter.com/dpRDjxElKe
— Statistics South Africa (Stats SA) (@StatsSA) February 18, 2026