Mbabane – Broad-based price stability took hold in November last year as inflation rate eased to 2.4%, with balanced movements across goods and services and declining prices in key consumer categories.
Data from the Central Statistical Office (CSO) show that inflation declined by 0.5 percentage points from October’s 2.9%, and was significantly lower than the 3.7% recorded in November 2024. The sustained disinflation trend signals improving macroeconomic stability, a key consideration for both domestic enterprises and foreign investors.
On a month-on-month basis, prices were unchanged, underscoring broad price stability across the economy. For businesses, this environment reduces cost volatility, allowing firms to plan production, pricing and wage decisions with greater certainty.
A major driver of the slowdown was the stabilisation of food prices. Food and non-alcoholic beverages recorded zero annual inflation, a sharp improvement from 3.6% a year earlier. This development is particularly significant for retailers, manufacturers and hospitality operators, as food costs represent a substantial input expense and a major determinant of consumer purchasing power.
Price movements across goods and services were broadly balanced, with goods inflation at 2.5% and services at 2.4%. This balance suggests that inflationary pressures are not concentrated in any single segment of the economy, reducing the risk of sudden cost shocks for businesses operating across multiple sectors.
The hospitality sector, however, reflected weaker demand conditions. Prices in restaurants and hotels declined by 5.2% year-on-year, a stark reversal from the exceptionally high inflation of 29.4% recorded in November 2024. While deflation in this category eases costs for consumers, it also points to competitive pricing and subdued activity, prompting operators to focus on volume growth and efficiency.
Encouragingly for manufacturers and distributors, inflation in alcoholic beverages, tobacco and narcotics slowed sharply to 4.3% from 12.2% a year earlier, reflecting moderating price growth in beer and wine products.
Despite the overall moderation, some cost pressures persist. Housing, water, electricity, gas and other fuels remained the largest contributor to headline inflation, accounting for 1.2 percentage points. Clothing and footwear inflation accelerated to 6.9%, while education costs rose by 4.7%, continuing to place pressure on household budgets and potentially influencing consumer spending patterns.
The CSO also highlighted that administered prices rose faster than market-determined prices, with administered inflation at 3.2% compared to 2.2% for non-administered items. This suggests that regulated costs, rather than demand-driven pressures, are playing a more prominent role in shaping inflation outcomes.
For the business community, the latest inflation data reinforces Eswatini’s image as a stable operating environment. Low and predictable inflation improves real incomes, supports consumer demand, and creates space for accommodative financial conditions, factors that collectively strengthen the country’s attractiveness as an investment destination.
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