Finance · South Africa
Inflation Rises Slightly; Possible Interest Rate Cut Expected
Moneyweb · 2026/01/21
Summary
South Africa's inflation rate increased slightly from 3.5% in November to 3.6% in December. This small rise means that prices for everyday goods and services are going up a little bit, but the overall increase is still relatively low and manageable. The outlook for inflation remains stable, which has encouraged experts to support the idea of lowering interest rates. Lower rates can make borrowing cheaper for consumers and businesses, helping to stimulate the economy. However, it is important for people to monitor their spending and manage budgets carefully, as any increase in inflation can affect the cost of living. For businesses, the mild inflation rise suggests that profit margins may not be heavily impacted, but they should remain cautious about potential future changes.
OnABudget takeaway: The slight rise in inflation means prices are increasing slowly, but a possible rate cut can help reduce borrowing costs, making it easier for consumers and small businesses to manage expenses and grow.