South Africa’s inflation rate falls to 4.3%
Statistics South Africa has announced that annual consumer price inflation eased to 4.3 per cent last month, down from five per cent in June.
The latest figure marks a moderation in price pressures, while consumer prices increased by 0.2 per cent month-on-month.
The decline in annual inflation brings price growth closer to the midpoint of the South African Reserve Bank’s target range.
The data will be closely watched by policymakers when assessing future interest-rate decisions.
Stats SA says the slowdown can be attributed to three main factors: softer inflation for food & non-alcoholic beverages (NAB), lower municipal tariff increases, and a decline in fuel prices.
The annual rate for food & NAB declined 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%.
Municipalities implemented their tariff increases in July, with most CPI tariff categories seeing lower increases in 2026 than in 2025.
Electricity tariffs rose by 8,1% in 2026, down from a rise of 10,4% in 2025.
A similar pattern was recorded for water tariffs (10,2% compared with 12,1%) and refuse removal (4,7% compared with 6,6%).
In contrast, sewerage tariffs increased by 7,8% in 2026, higher than the 6,5% rise recorded in 2025.
Property assessment rates increased by 4,9% in both 2025 and 2026.
“Annual transport inflation also cooled to 8,9% in July from 12,7% in June, mainly due to lower fuel prices. Petrol prices decreased by 7,1% and diesel by 11,7% between June and July, pulling the annual rate for fuel down to 20,6% from 34,3% in June,” said Stats SA’s Patrick Kelly.
Despite the monthly decline, petrol is 19,3% and diesel 28,8% more expensive than a year ago.
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