Sarb sees inflation easing after December peak, keeps rates on hold

SOUTH Africa's inflation rate is expected to ease in the months ahead after peaking in December, despite ongoing risks from food and administered prices, South African Reserve Bank (Sarb) Governor Lesetja Kganyago said on Thursday.

- SIPHELELE DLUDLA

Speaking after the Monetary Policy Committee (MPC) meeting, Kganyago said inflation reached 3.6% in December 2025, driven largely by temporary factors, but is now expected to slow.

Overall inflation for 2025 averaged 3.2%, close to the Reserve Bank's 3% target under its newly adopted inflation framework. "We expect this was the peak, and that inflation will slow from here," Kganyago said, adding that near-term inflation forecasts have improved due to a stronger rand and lower assumed oil prices.