SA inflation eases to 3.5% in Jan, closer to 3% target

South Africa's inflation rate fell to 3.5% year-on-year in January 2026, down from 3.6% in December, bringing it closer to the central bank's 3% target. This moderation strengthens expectations for a potential interest rate cut when policymakers meet on March 26. Food inflation remained unchanged at 4.4% for the third consecutive month, though price movements varied significantly across categories. Cereals, dairy, and edible oils saw notable declines, while meat prices surged to 13.5%. The data comes from Statistics South Africa, a Tier 1 source. Nigeria also recorded a slight inflation moderation to 15.10% in January, though the CBN maintains its 27% policy rate. This easing in SA inflation may influence Nigeria's upcoming February 23-24 MPC meeting.

SOURCE: https://nairametrics.com/2026/02/18/south-africa-inflation-dips-to-3-5-as-interest-rate-cut-looms/