• Inflation may fall to about 3% in 2026, helped by lower food prices, a stronger rand and fuel price cuts.

• Slower inflation means prices rise more slowly, not that they go back down, so many families will still feel pressure.

South Africa's inflation rate is expected to slow to around 3% in 2026 after the government lowered its inflation target.

Finance Minister Enoch Godongwana announced the new target in the Medium-Term Budget Policy Statement. It allows inflation to move slightly up or down depending on how the economy performs.

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Inflation was recorded at 3.5% in November 2025, and economists expect it to stay low in the months ahead.

Investec chief economist Annabel Bishop said lower global food prices, good rainfall and a stronger rand are helping to keep inflation down, BusinessTech reported.

She said some food items have already become cheaper, especially products linked to maize and soybeans, which has helped bring down poultry prices.

Foot-and-mouth disease pushed up some meat prices, but vaccinations planned for 2026 are expected to limit further increases.

Motorists are also expected to get some relief, with a fuel price cut of more than 60 cents per litre expected in January.

Bishop warned that some costs could still rise at the start of the year, including wages and sin taxes.

She said inflation could fall to 3% by February 2026 and drop even further later in the year.

Economists say it is important for households to understand that lower inflation does not mean prices will fall.

It simply means prices are going up more slowly than before.