Annual inflation increased to 4.4% in August 2026 from 4.3% in July, but remained below the 4.5% forecast. Transportation prices continued to provide upward pressure at 8.8%, compared with 8.9% in July, while food-price inflation accelerated to 1.1% from 0.9%, its first increase in nine months. Core inflation, which excludes food, non-alcoholic beverages, fuel and energy, eased to 4.1% from July’s two-year high of 4.2% and was slightly below the expected 4.2%. The CPI was unchanged month over month after rising 0.2% in July. Analysts said the modest increase was unlikely to alter the South African Reserve Bank’s decision, with most economists expecting a 25-basis-point rate increase to 7.25%. The August rise was mainly driven by housing and utilities, transport, and insurance and financial services, while strong crop production was expected to keep food-price pressures contained despite risks from an anticipated El Nino weather event.