Image Source: StatsSa
Local – South Africa’s headline inflation rate eased for the first time in five months, dropping to 4,3% in July from 5,0% in June, Statistics South Africa (Stats SA) reported. The monthly increase in the consumer price index (CPI) also slowed, coming in at 0,2% in July compared with 0,7% in June.
Stats SA said the decline was due to three factors: softer food and non-alcoholic beverage (NAB) inflation, smaller municipal tariff increases, and falling fuel prices. The annual rate for food and NAB dropped to 0,9% in July.
“This is the lowest print for food & NAB in more than 16 years, since June 2010 when it was 0,7%. Incidentally, that was the month when South Africa hosted the FIFA World Cup,” Stats SA said.
Meat and Cereal Prices Drag Food Inflation Down
Cereal products and meat drove the decline. Cereal products recorded an annual change of -2,0%, while maize meal fell 3,1% month-on-month. Annual meat inflation slowed to 1,5% from 5,1% in June, with unprocessed beef products such as stewing beef and beef mince posting negative annual price changes.
Fruits and nuts, fish, vegetables, and oils and fats moved the other way, recording higher annual rates. Municipal tariff increases were also smaller than in 2025, and transport inflation slowed to 8,9% from 12,7% in June on the back of cheaper fuel.
“Despite the monthly decline, petrol is 19,3% and diesel 28,8% more expensive than a year ago,” Stats SA said.
Government Welcomes Decline
Government welcomed the drop in consumer inflation, saying it eased pressure on households. GCIS said in a statement that the lower inflation could support economic confidence and activity.
“Government recognises that many South Africans continue to face significant household financial pressures. While the easing of inflation is positive, Government remains focused on measures that support households, strengthen food and energy security, create employment opportunities and promote inclusive economic growth.”
“The latest inflation figures are a positive development, and Government will continue to work with social partners to address economic constraints and to advance measures aimed at reducing the cost of living and improving the wellbeing of South Africans,” GCIS said.
