The annual consumer price inflation (CPI) slowed to 4.6% in July compared to the same month a year ago, down from 5.1% in June, mainly driven by slowing food prices after holding steady for 10 months in the 5–6% range.
This was the lowest inflation print in three years since July 2021, when the rate was also 4.6%.
Statistics South Africa said lower annual rates were recorded for several product groups, most notably food and non-alcoholic beverages (NAB), transport, and housing and utilities.
Stats SA's chief director of price statistics, Patrick Kelly, said the annual rate for food and NAB was 4.5% in July, down from 4.6% in June, registering a slowing inflation trend since its most recent high of 9.0% in November 2023 and is currently at its lowest since September 2020 when it was 3.8%.
“While overall food inflation has slowed, bread and cereals is showing upward momentum. The category recorded an annual increase of 5,6% in July, up from June’s 5.2%.
“Products with the largest annual increases in July include rice, pizza or pies and samp. Maize meal prices rose on average by 5.1%. On a positive note, bread flour, cake flour, pasta and macaroni are cheaper than a year ago.
“Meat is the most heavily weighed food group in the inflation basket, taking up just over a third of household spending on food. The price index for meat recorded a monthly decline of 0.4% and an annual rise of 1.0%.”
On a monthly basis, consumer inflation was 0.4%, higher than the 0.1% rise recorded between May and June.
Kelly also said most categories in the transport group, except for public transport, witnessed lower annual rates as fuel prices declined for a second consecutive month in July.
“Fuel prices receded for a second straight month, declining by 3.6% in July. This followed a 4.6% decrease in June. Inland 95-octane petrol was 99c cheaper, falling from R24.25 in June to R23.26 in July. The average price for diesel declined by 41 cents over the same period, from R23.76 to R23.35,” he said.
Meanwhile, most municipalities implement tariff increases in July.
Kelly said that overall, the housing and utilities index increased by 2.6% between June and July, leading to an annual increase of 5.3%.
However, he said tariff hikes were lower in 2024.
“Electricity tariffs increased by 12.1% compared with 15.3% in 2023, water tariffs by 7.5% compared with 9.6% in 2023, and property rates by 10.7% compared with 8.4% in 2023,” Kelly said.
“An exploration of tariffs over time shows electricity prices rising the fastest over the last 15 years. Electricity tariffs recorded an average growth rate of 10.5% per year from 2009 to 2024, outpacing water tariffs and property rates.
“In the last 10 years, water tariffs have risen the most, increasing by an average of 9.9% per year. Electricity tariffs increased by an average of 9.5% per year, and property rates by an average of 6.6%.”
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