Transport costs among main contributors to CPI uptick

The latest Statistics South Africa (Stats SA) data shows that Consumer Price Inflation (CPI) was 4.5% in September 2026, up from 4.4% in August.

The current increase in headline inflation was lower than the 4.7% increase that the market had expected.

Main contributors to the increase were transport, housing and utilities, insurance and financial services.

CPI increased by 0.4% month-on-month in September 2026.

Transport pressure contributed to the increase, with costs increasing by 10.8% year-on-year contributing 1.5% to the increase.

The petrol price increased by R6.13 per litre and diesel climbed R10.66 between January and September.

This was due to global supply constraints caused by the war between United States and Iran.

Chief Economist at Agricultural Business Chamber, Wandile Sihlobo, says, “But when one begins to look at the long term, there are concerns of the food price which continues to increase.

We must remember that roughly 80% of the food in South Africa is transported by road and the El Nino drought will affect the next season crop and that worries us when we think about the food price inflation.” Food price inflation in September was at 1%, having increased mildly from 0.7% in August.

In July, food prices were at 0.6%, which was the lowest level in 16 years.

“What drove this mild uptick in food is primarily sea food and fish oils and fats and a bit of vegetables which is in deflation, there is generally a supply issue with seafood,” adds Sihlobo.

Inflation is expected to rise further in November driven by high fuel prices.

The better-than-expected inflation rate has allayed fears of another interest rate hike next month.