South Africa Inflation Eases to 3.5% in January as Fuel Prices Fall

Inflation for consumers went down to 3.5 percent in January, according to data released this morning. Lower prices for petrol and diesel helped make things easier for households.

Numbers from Statistics South Africa show that the yearly consumer price index cooled down compared to the previous months. This is because fuel costs were softer and prices in some areas were more stable.

Fuel was a reason for the slowdown. Petrol and diesel prices went down, so transport costs were lower. This gave some relief to people who commute and businesses. Transport is a part of what people buy, so changes in fuel prices often have a wide impact.

Food prices are still a bag. Meat, beef, kept getting more expensive, making grocery bills higher for many families. Some analysts said supply issues and input costs are still affecting some parts of farming.

Inflation is still within the 3 to 6 percent range that the South African Reserve Bank targets. Economists think the latest numbers might influence decisions on policy, especially as the central bank considers growth concerns and price stability.

Core inflation, which does not include food and energy, moved moderately. This suggests that underlying price pressures might be stabilizing.

Statistics South Africa said the detailed breakdown of January data will help policymakers and businesses see trends in consumer spending and household costs in the coming months.