South Africa consumer inflation slows more than expected in July
Statistics South Africa said food, fuel and municipal tariffs helped slow annual price growth below economists’ 4.5% forecast.
- Statistics South Africa announced on Wednesday that headline inflation fell sharply to 4.3% in July, down from 5.0% in June, marking the first decline in five months.
- Three key factors drove the slowdown: softer food inflation, lower municipal tariff increases, and declining fuel prices. Food and non-alcoholic beverage inflation fell to 0.9% in July, its lowest level in more than 16 years.
- Petrol prices declined by 7.1% between June and July, while diesel prices fell by 11.7%. Meat inflation slowed to 1.5% from 5.1%, and cereal product prices fell by 2.0% year on year.
- While core inflation accelerated slightly to 4.2% from 4.1% in June, the South African Reserve Bank faces pressure to hold interest rates on hold as inflation remains above the 3% target.
- Tertia Jacobs, Treasury Economist at Investec, welcomed the July data but added it is important to remain "cautious about reading this as the start of a sustained decline in inflation." Future oil-price forecasts have been revised higher due to Strait of Hormuz uncertainty.
12 Articles
12 Articles
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Four foods getting cheaper in South Africa
South Africans are experiencing a significant drop in their grocery bills as food inflation drops to a near-flat annual rate of 0.9% in July 2026. According to Statistics South Africa (Stats SA), the sudden cooling of grocery costs is a primary driver behind the decline in the national annual headline consumer price inflation, which fell to 4.3% in July 2026 from 5% in June 2026. #SAInflation || Annual consumer price inflation declined to 4,3% …
Annual inflation in South Africa slowed to 4.3% in July, after 5.0% in June, according to data published on Wednesday by Statistics South Africa. However, the pace is lower than the 4.5% expected by economists. The slowdown is mainly due to a slower increase in food prices, more moderate increases in municipal tariffs...
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