View noticesConsumer inflation cools to 4,3% in July, food prices lowest in 16 years
The lower food inflation rate was driven mainly by cereal products and meat.
South Africa's headline consumer inflation rate slowed for the first time in five months in July, falling to 4,3% from 5,0% in June, Statistics South Africa (Stats SA) reported.
The monthly increase in the consumer price index (CPI) came in at 0,2%, down from 0,7% the previous month.
Stats SA attributed the slowdown to three main factors: softer inflation for food and non-alcoholic beverages, lower municipal tariff increases, and a decline in fuel prices.
Food inflation at its lowest in 16 years
The annual rate for food and non-alcoholic beverages fell to 0,9% in July – the lowest reading for the category in more than 16 years, since June 2010, when it stood at 0,7%. That earlier low coincided with the month South Africa hosted the FIFA World Cup.
The lower food inflation rate was driven mainly by cereal products and meat. Cereal products recorded an annual decline of 2,0%, having fallen 1,5% in June, with maize meal, macaroni and white bread among the products showing softer monthly price movements.
Annual meat inflation slowed sharply to 1,5%, down from 5,1% in June. Unprocessed beef products showed negative annual price changes, with stewing beef, beef steak and beef mince all cheaper than a year earlier. Several processed meat products moved in the opposite direction, however, with corned meat, meat patties, russians and sausages all recording notable annual increases.
Not every food category cooled. Fruits and nuts, fish and other seafood, vegetables, oils and fats, cold beverages, and milk, other dairy products and eggs all registered higher annual inflation rates in July, with oils and fats rising from 2,3% in June to 2,8%. Among the 144 food and beverage products tracked in the CPI basket, several fish products saw sharp monthly increases, including battered or crumbed fish portions, fish fingers, hake and canned fish other than tuna.
Municipal tariffs rise more slowly than in 2025
Municipalities implement their annual tariff increases each July, and most categories saw smaller increases in 2026 than the year before. Electricity tariffs rose 8,1%, down from 10,4% in 2025, while water tariffs increased 10,2% compared with 12,1% previously, and refuse removal climbed 4,7% against 6,6% a year earlier.
Sewerage tariffs bucked the trend, rising 7,8% – higher than the 6,5% increase recorded in 2025 – while property assessment rates increased 4,9% in both years.
Fuel prices pull transport inflation down
Annual transport inflation eased to 8,9% in July from 12,7% in June, largely on the back of lower fuel prices. Petrol prices fell 7,1% and diesel 11,7% between June and July, bringing the annual rate for fuel down to 20,6% from 34,3% the previous month. Despite the monthly declines, petrol remains 19,3% more expensive than a year ago, and diesel 28,8% more expensive.
Source: Statistics South Africa