Inflation down in March due to fuel and education prices

Headline consumer inflation decreased for the first time in five months, edging lower to 2.7% in March from 3.2% in February, mainly thanks to lower fuel prices and softer inflation for education.

Statistics SA revealed the inflation rate for March this morning. The data shows that the fuel index softened by 0.4% from February, taking the annual rate from -3.6% to -8.8%. A litre of 95-octane petrol (inland) cost R22.34 in March, down from R24.45 a year before. The average price for diesel decreased to R22.80 from R24.85 over the same period.

The fees for education are surveyed once a year in March. According to Statistics SA, the price index for education increased by 4.5%, lower than the 6.4% increase in 2024. School fees increased by 5% from 6.6% in 2024, while tertiary education institutions charged 3.7% more in 2025, compared to the 5.9% increase recorded the year before.

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Food inflation decreased slightly in March

The annual inflation rate for food and non-alcoholic beverages edged lower to 2.7% in March from 2.8% in February.

Vegetables, fruits and nuts, cereal products, meat and fish registered higher annual rates, while oils and fats, hot beverages, milk, other dairy products and eggs, cold drinks and sugar, confectionery and desserts cost less.

According to Statistics SA, inflation for cereal products accelerated to 4.3% in March from 3.9% in February. Maize meal remains a key driver in this category, with its annual rate jumping to 13.1% from 10.6%.

Fortunately, there is some good news, as the monthly increases for maize meal have recently slowed, from 4.8% in January to 2.4% in February and 1.4% in March.

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Almost everything you drink was more expensive in March

However, coffee and tea drinkers continue to feel the pain of high prices. Although the annual rate for the hot beverages category declined slightly in March, it remains in double-digit territory at 14.4%.

This category has witnessed double-digit inflation in all but 5 of the 32 months since August 2022, with instant coffee 18.8% and black tea 12.8% more expensive than a year ago.

Alcoholic beverages also added pressure, with prices increasing on average by 2.1% between February and March, taking the annual rate to 4.7% from 4.1% in February. Annual increases were also recorded for wine (up 5.3%), beer (up 4.4%) and spirits and liqueurs (up 4.3%).

This graph shows the food and beverage products that registered notable price changes:

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The price of renting a house also increased over the past year

Other notable price changes include rent for housing that were surveyed for the first quarter of the year in March, showing that actual rentals increased by 2.9% and owners’ equivalent rent by 2.4% in March 2025 compared to March 2024.