The headline inflation rate cooled for the first time in five months, declining to 4,3% in July from 5,0% in June. The monthly increase in the consumer price index (CPI) was 0,2%, down from 0,7% in June.
The slowdown can be attributed to three main factors: softer inflation for food & non-alcoholic beverages (NAB); lower municipal tariff increases; and a decline in fuel prices.
Food inflation lowest in 16 years
The annual rate for food & 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.
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%).
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%).
Food & NAB categories that registered higher annual inflation rates in July include fruits & nuts; fish & other seafood; vegetables; oils & fats; cold beverages; and milk, other dairy products & eggs. Oils & fats, for example, saw its rate rise from 2,3% in June to 2,8%.
There are 144 food and beverage products in the CPI basket. The graph below shows those that recorded the largest price changes in July. Several fish products recorded sharp monthly increases, including battered or crumbed fish portions (+3,5%); fish fingers (+2,3%); hake (+2,1%); and canned fish (excluding tuna) (+2,0%).
Municipal tariff increases softer in 2026
Municipalities implement their tariff increases in July each year. Most CPI tariff categories saw lower increases in 2026 than in 2025. Electricity tariffs rose by 8,1% in 2026, down from a rise of 10,4% in 2025. A similar pattern was recorded for water tariffs (10,2% compared with 12,1%) and refuse removal (4,7% compared with 6,6%).
In contrast, sewerage tariffs increased by 7,8% in 2026, higher than the 6,5% rise recorded in 2025. Property assessment rates increased by 4,9% in both 2025 and 2026.
Fuel prices retreat in July
Annual transport inflation cooled to 8,9% in July from 12,7% in June, mainly due to lower fuel prices. Petrol prices decreased by 7,1% and diesel by 11,7% between June and July, pulling the annual rate for fuel down to 20,6% from 34,3% in June. Despite the monthly decline, petrol is 19,3% and diesel 28,8% more expensive than a year ago.
The slowdown can be attributed to three main factors: softer inflation for food & non-alcoholic beverages (NAB); lower municipal tariff increases; and a decline in fuel prices.
Food inflation lowest in 16 years
The annual rate for food & 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.
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%).
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%).
Food & NAB categories that registered higher annual inflation rates in July include fruits & nuts; fish & other seafood; vegetables; oils & fats; cold beverages; and milk, other dairy products & eggs. Oils & fats, for example, saw its rate rise from 2,3% in June to 2,8%.
There are 144 food and beverage products in the CPI basket. The graph below shows those that recorded the largest price changes in July. Several fish products recorded sharp monthly increases, including battered or crumbed fish portions (+3,5%); fish fingers (+2,3%); hake (+2,1%); and canned fish (excluding tuna) (+2,0%).
Municipal tariff increases softer in 2026
Municipalities implement their tariff increases in July each year. Most CPI tariff categories saw lower increases in 2026 than in 2025. Electricity tariffs rose by 8,1% in 2026, down from a rise of 10,4% in 2025. A similar pattern was recorded for water tariffs (10,2% compared with 12,1%) and refuse removal (4,7% compared with 6,6%).
In contrast, sewerage tariffs increased by 7,8% in 2026, higher than the 6,5% rise recorded in 2025. Property assessment rates increased by 4,9% in both 2025 and 2026.
Fuel prices retreat in July
Annual transport inflation cooled to 8,9% in July from 12,7% in June, mainly due to lower fuel prices. Petrol prices decreased by 7,1% and diesel by 11,7% between June and July, pulling the annual rate for fuel down to 20,6% from 34,3% in June. Despite the monthly decline, petrol is 19,3% and diesel 28,8% more expensive than a year ago.
