South Africa inflation falls to 4.3% as food prices drop

South Africa's annual consumer price inflation slowed markedly in July, falling to 4.3% from 5.0% in June, according to data released by Statistics South Africa on August 19, 2026. The decline, the first in five months, was driven by a significant easing in food prices, smaller municipal tariff increases, and a retreat in fuel costs, providing some relief to households after a period of accelerating prices.

The statistics agency reported that the monthly increase in the consumer price index was 0.2% in July, a sharp drop from the 0.7% recorded in June. Patrick Kelly, the Chief Director for Price Statistics, attributed the overall slowdown to three main factors: softer inflation for food and nonalcoholic beverages, lower municipal tariff increases, and a decline in fuel prices.

The most notable contributor was food and nonalcoholic beverage inflation, which fell to 0.9% in July. This marks the lowest level for this category in more than 16 years, since June 2010. According to Stats SA, the drop was primarily due to lower prices for cereal products and meat. Cereal products recorded an annual price decrease of 2.0%, while meat inflation slowed to 1.5% from 5.1% in June, with...