New data released by Statistics South Africa (Stats SA) shows that the country's annual consumer price inflation (CPI) edged higher to 3.1% in March 2026, up from 3.0% in February.
While overall inflation remains within the South African Reserve Bank's target range, significant price hikes in education and rising rental costs provided upward pressure; even as food and transport costs showed signs of moderation.
Education costs surge
A primary driver of the March increase was the annual update of the education component. Tuition fees rose by 5.4% increase recorded in 2025. Primary and secondary education saw a combined increase of 6.2%, with private secondary schools recording the sharpest spike at 7.5%.
Tertiary education fees rose by 4.2%. Additionally, university boarding fees climbed by 7.2% between February and March, adding further financial strain on households with students.
Housing and domestic wages
The first quarter of 2026 also saw a rise in housing costs. According to the latest quarterly survey, actual rents increased by 4.0%, up from 3.7% in the previous quarter.
Townhouses saw the highest rental inflation at 5.1%, followed by flats at 4.2% and houses at 3.7%. In the labor sector, domestic worker wages increased by 3.7% in the first quarter of 2026. While significant, this was a slight deceleration from the 3.8% increase recorded in late 2025.
Transport: Deflationary but rising
The transport sector remains in deflationary territory, though the rate is moving closer to positive figures. The annual rate for transport moved from -2.1% in February to -1.6% in March. This continued deflation is largely due to a 12-month decline in fuel prices of 8.7%.
However, travelers felt a pinch in other areas. Long-distance bus fares jumped by 20.0% and airfares increased by 14.3% over the month. Stats SA warned that while fuel prices helped keep March figures low, the sharp fuel price increases introduced on April 1st are not reflected in this report and will likely impact the May inflation release.
Food inflation provides some relief
In a turn of positive news for consumers, food and non-alcoholic beverages (NAB) inflation slowed for the second consecutive month, easing to 3.6% . Regarding staples, milk, dairy, and eggs recorded their 10th consecutive month of deflation, while white rice prices dropped with the average price per kilogram falling from R29,01 to R27,82 over the last year.
Meat inflation also eased to 11.6% as prices for beef steak, stewing beef, and mince all saw monthly declines. However, pork and bacon bucked this trend, with bacon inflation rising to 4.2%.
Fresh produce remained volatile; while vegetable prices overall are in deflationary territory, certain items like beetroot and tomatoes saw sharp monthly increases of 15.3% and 7.2%, respectively.
Looking ahead
While the slight rise to 3.1% suggests a stable inflationary environment, the looming impact of April's fuel hikes and the steady rise in service costs like education and rent suggest that the nudge upward may continue in the coming months.
The next CPI release, scheduled for May 20, will be closely watched for the impact of rising energy costs on the broader economy.