South Africa: inflation slows to 4.3% in July 2026

The Consumer Price Index used as the main measure focuses on households in urban areas. Month-on-month, prices increased by 0.7% in July, compared to 0.6% in June.

An additional series covering the entire territory shows an annual inflation rate of 4.1% in July. This measure should not be confused with the national benchmark rate of 4.3%, calculated based on the urban scope usually used in communications from Statistics South Africa.

The South African Reserve Bank has been targeting an inflation rate of 3% since 2026, with a tolerance margin of one percentage point on either side. Thus, the July rate remains slightly above the upper limit of this margin.

The key rate maintained at 7%

At its July meeting, the central bank kept its key rate at 7%. It noted that the inflation in June, at 5%, had exceeded its expectations, mainly due to base effects related to fuel prices.

The slowdown observed in July provides a respite after the acceleration recorded in previous months: the annual inflation had risen from 4.5% in May to 5% in June. However, the central bank continues to monitor administered prices, energy, and the performance of the rand.

The upcoming monetary policy decisions will be based on the price trajectory and new growth projections. Statistics South Africa is set to publish the August figures according to its usual monthly schedule.