South Africa’s inflation puzzle: Markets see calm, households feel the squeeze

• Services inflation surges, masking headline stability
• Food volatility and regional gaps deepen economic strain

CAPE TOWN, SOUTH AFRICA – South Africa’s inflation ticked up in March, but beneath the headline lies a far more complex story of rising service costs, volatile food prices, and uneven regional pressure.

South Africa’s consumer price inflation rose to 31% in March 2026, up from 30% in February, according to Statistics South Africa. At first glance, the increase appears modest. But a closer look at the data reveals widening fault lines that could reshape how policymakers, investors, and households interpret inflation risks.