S. Africa’s annual inflation down to 4.6% in July

South Africa’s annual consumer price inflation decreased to 4.6 per cent in July, down from 5.1 per cent in June, its lowest level since July 2021. Key contributors to this decline include reductions in food and non-alcoholic beverages, transport, and housing & utilities. The monthly consumer price index (CPI) rose by 0.4 per cent, a notable increase from the 0.1 per cent rise recorded between May and June.

Food and non-alcoholic beverages annual inflation rate dipped to 4.5 per cent, down from a peak of 9.0 per cent in November 2023. Despite this overall decrease, prices for bread and cereals climbed by 5.6 per cent annually, with notable increases in rice, pizza, and samp. Meat prices experienced a slight monthly decrease but rose by 1.0 per cent year-on-year.

Hot beverages faced the highest inflation, with prices surging 17.6 per cent over the past year, driven by steep increases in instant coffee and other coffee products.

Fuel prices fell for the second consecutive month by 3.6 per cent in July after a 4.6 per cent decline in June. Inland 95-octane petrol now costs R23.26 per litre, while diesel prices have decreased to R23.35 per litre.

The housing and utilities index increased by 2.6 per cent month-on-month, leading to a 5.3 per cent annual rise. Although tariffs for electricity, water, and property rates have increased, they were lower than in 2023. Electricity tariffs have risen the fastest over the past 15 years, with an average annual growth rate of 10.5 per cent.

Attribution: Statistics South Africa data

Subediting: M. S. Salama