Annual inflation in South Africa significantly decreased in July, reaching 4.3%, compared to 5.0% in June. According to data published on Wednesday by the Statistics South Africa (Stats SA) agency, this marked the first decline in the overall inflation rate in five months.
The main factors slowing down inflation were the decrease in the growth rate of food prices, the reduction in municipal tariff increases, and the fall in fuel prices.
Inflation in the 'food and non-alcoholic beverages' category dropped to 0.9% in July, the lowest figure in over 16 years. Stats SA noted that this was the lowest level since June 2010, when it stood at 0.7%.
The decline in inflation in this category was driven by prices for cereals and meat. The cost of cereals fell by 2.0% year-on-year, compared to a 1.5% drop in June. Additionally, pasta prices fell by 0.7%, and white bread prices fell by 0.6%.
The meat segment saw a sharp slowdown in inflation, which decreased to 1.5% in July from 5.1% in June. Unprocessed beef products showed negative price changes year-on-year: stewing beef fell by 7.9%, beef steak by 6.1%, and ground beef by 5.8%. However, some processed meat products showed growth, including sausages (+11.8%), meat patties (+7.8%), Russian sausages (+7.7%), and hot dogs (+6.2%).
Despite the overall decrease, some food categories showed higher annual price growth in July. These include fruits and nuts, fish and other seafood, vegetables, oils and fats, cold drinks, as well as milk, other dairy products, and eggs. For example, inflation on oils and fats rose from 2.3% in June to 2.8% in July.
Municipal tariffs also stabilized in July: electricity tariffs increased by 8.1%, which is lower than the 10.4% recorded in 2025. Inflation in the transport sector slowed to 8.9% in July compared to 12.7% in June, primarily due to cheaper fuel.
Gasoline prices fell by 7.1%, and diesel fuel prices fell by 11.7% between June and July, leading to a decrease in the annual fuel inflation rate to 20.6% from 34.3% in June. Nevertheless, despite the monthly decrease, gasoline remains 19.3% more expensive, and diesel fuel remains 28.8% more expensive than a year ago.