Statistics South Africa released the results early Wednesday, 19 August 2026.
The result heralds a significant improvement from June when the Sarb kept its policy rate at 7%, and provides greater scope for monetary easing, Importantly, the 4.3% result is now back within the Sarb's 3%-6% target range, although still above its 3% midpoint.
The moderation was driven by softer food inflation, lower municipal tariff increases and falling fuel prices. Food and non-alcoholic beverage inflation dropped to 0.9%, its lowest level in more than 16 years, helped by lower cereal and meat prices. Municipal electricity, water and refuse tariffs also rose less than in 2025.
Transport inflation fell to 8.9% from 12.7%, following sharp monthly declines in petrol and diesel prices. However, fuel remains significantly more expensive than a year ago, with petrol up 19.3% and diesel 28.8% year-on-year.
The annual rate for food & non-alcoholic beverages (NAB) declined to 0.9% in July. This is the lowest print for food & NAB in more than 16 years, since June 2010 when it was 0.7%.
"Incidentally, that was the month when South Africa hosted the FIFA World Cup," StatsSA said.
The lower rate for food & NAB in July 2026 was mainly due to cereal products and meat.
"Cereal products recorded an annual change of -2,0%, down from -1,5% in June. Several products recorded softer monthly rates, most notably maize meal (-3,1%), macaroni (-0,7%) and white bread (-0,6%)," StatsSA added.
"Annual meat inflation slowed to 1,5% from 5,1% in June. Unprocessed beef products reflected negative annual price changes, with stewing beef at -7,9%, beef steak at -6,1% and beef mince at -5,8%. However, several processed meat products recorded an increase, including corned meat (+11,8%), meat patties (+7,8%), russians (+7,7%) and sausages (+6,2%)."
There are 144 food and beverage products in the CPI basket.
