Annual headline consumer price inflation fell to its lower rate since 2011, StatsSA announced on Wednesday morning.
CPI, which measures changes in prices for a range of consumer products, was 3.7% in October, down from 4.1% in September.
This is within the target range of between 3% and 6% set by the SA Reserve Bank, and slightly below the expectations of economists. Ahead of Wednesday's announcement, analysts from NKC Economics projected inflation to come in at 3.9%.
The rand was unchanged following the announcement, trading at R14.84/$.
TreasuryONE, in a note to clients, said the rate "leaves the door open for an interest rate cut [on Thursday]," but said if the SA Reserve Bank will move is another question. The central bank's governor, Lesetja Kganyago, will announce the made outcome of the bank's monetary policy committee meeting on the repo rate in Pretoria on Thursday afternoon.
The repo rate is the benchmark interest rate at which the Reserve Bank lends money to other banks.