South Africa Inflation Rate Cools More than Anticipated

2026-08-19 08:15 By Luisa Carvalho 1 min. read

South Africa's annual inflation rate eased to 4.3% in July 2026 from a two-year high of 5% in the prior month and below analysts' estimates of 4.5%.

This marked the first slowdown in five months, helped by softer transportation costs (8.9% vs 12.7% in June).

Fuel prices slowed to 20.6% from 34.3%, reflecting lower South African petrol prices as crude oil prices pulled back from their early-Middle East-conflict highs.

The easing was further supported by food and non-alcoholic beverages (0.9% vs 1.6%), driven by lower cereal prices (-2% vs -1.5%) and slower meat inflation (1.5% vs 5.1%).

Price growth also moderated for housing and utilities (5.2% vs 5.5%), on smaller municipal tariff increases.

Meanwhile, core inflation, which excludes prices of food, non-alcoholic beverages, fuel, and energy, inched up to 4.2% from 4.1% in June, reaching the highest since July 2024.

On a monthly basis, the CPI rose by 0.2% in July, down from a 0.7% increase in the month before.



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South Africa Inflation Rate Cools More than Anticipated
South Africa's annual inflation rate eased to 4.3% in July 2026 from a two-year high of 5% in the prior month and below analysts' estimates of 4.5%. This marked the first slowdown in five months, helped by softer transportation costs (8.9% vs 12.7% in June). Fuel prices slowed to 20.6% from 34.3%, reflecting lower South African petrol prices as crude oil prices pulled back from their early-Middle East-conflict highs. The easing was further supported by food and non-alcoholic beverages (0.9% vs 1.6%), driven by lower cereal prices (-2% vs -1.5%) and slower meat inflation (1.5% vs 5.1%). Price growth also moderated for housing and utilities (5.2% vs 5.5%), on smaller municipal tariff increases. Meanwhile, core inflation, which excludes prices of food, non-alcoholic beverages, fuel, and energy, inched up to 4.2% from 4.1% in June, reaching the highest since July 2024. On a monthly basis, the CPI rose by 0.2% in July, down from a 0.7% increase in the month before.
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South Africa Inflation Rate Accelerates, Still Below Forecasts
South Africa's annual inflation rate rose for the third month to 4.5% in May 2026, marking the steepest since July 2024, though below the expected 4.7%. Inflation was mainly driven by transportation (9.4% vs 4.9% in April) and housing & utilities (5.3% vs 5.2%), reflecting pass-through from higher fuel costs due to the Middle East conflict and Eskom’s recent electricity tariff hike. Additional upward pressure came from insurance and financial services (5.7% vs 5.7%) and restaurants & hotels (5.8% vs 5.2%). Meanwhile, food inflation continued to ease (1.9% vs 2.9%). The core inflation rate, which excludes prices of food, non-alcoholic beverages, fuel, and energy, rose to an over 1-1/2-year high of 3.8% in May, up from 3.6% in the previous month. Monthly, the CPI rose by 0.7% in May, down from a 1.1% increase in the prior month.
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