South Africa's annual inflation rate dipped to 2.8% in October, marking its lowest level since June 2020, according to official data released by Statistics South Africa, the country's national statistical service, on Wednesday.
Falling fuel prices, with government-regulated petrol and diesel prices dropping significantly, were the primary drivers of the decline from September's 3.8%.
"The consumer price index (CPI) increased by 2.8% in the 12 months to October 2024. This represents a sharp decline from 3.8% recorded in September. October's print is the lowest since June 2020 (during the COVID-19 pandemic), when the rate was 2.2%," Statistics South Africa's report read.
This reading is significantly below the 3%–6% target range of the South African Reserve Bank (SARB), and below the 3.1% level economists expected.
The SARB is widely anticipated to announce another interest rate cut on Thursday, following a first rate reduction in over four years in September.