By Nokukhanya Glory Mabuza
According to PPS Investments’ commentary on the February 2026 CPI release, Reza Hendrickse, Portfolio Manager at PPS Investments, says: “South Africans got a bit of financial relief in February 2026, as inflation slowed to 3.0%.” Simply put, the cost of living is still rising, but at a much slower pace than before.
💡 What does this mean in simple terms?
Inflation is how fast prices for everyday things (like food, petrol, and electricity) go up. When inflation drops, it means prices are still rising, but not as quickly, giving consumers a little breathing room.
⛽ Fuel prices bring relief
One of the biggest reasons for the slowdown is cheaper fuel. Transport costs actually dropped compared to last year, mainly because petrol prices fell by over 10%. This has helped reduce pressure on:
- Taxi and travel costs
- Delivery fees
- Prices of goods in shops
However, this relief might not last. Rising tensions in the Middle East are already pushing global oil prices higher, which could mean fuel prices go up again soon.
🛒 Food prices stabilising, but not all
Food prices are becoming more stable, increasing by around 3.7%. Some items like fruits and vegetables have even become cheaper.
But not everything is improving:
- Meat prices remain high, still increasing at double-digit rates
- Some food items are still under pressure due to supply issues
💡 Electricity and water still rising fast
While some costs are slowing down, others are still climbing quickly. Prices for:
- Electricity
- Water
- Insurance
- Healthcare
…are rising faster than overall inflation, which means many households are still feeling financial strain.
🏦 What about interest rates?
The South African Reserve Bank (SARB) aims to keep inflation around 3% to protect the economy. With inflation now hitting that target, the Bank is likely to:
- Be cautious
- Avoid rushing into big interest rate changes
🌍 Global risks still a concern
Even though things are improving locally, global events could change everything quickly. Rising oil prices and a weaker rand could push inflation back up in the coming months.
📊 Bottom line
- Prices are still rising, but more slowly
- Fuel relief is helping households for now
- Some essentials (like electricity and meat) remain expensive
- The future depends heavily on global events
For now, South Africans can enjoy a small break, but should stay prepared for possible price increases ahead.
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