South African inflation falls to three-year low

Inflation in South Africa fell to its lowest level in three years in July, official data showed on Wednesday.

Annual consumer price inflation reached 4.6% last month, down from 5.1% in June, national statistics agency StatsSA said in a statement.

"After holding steady for ten months in the 5–6% range, annual consumer price inflation slowed to... the lowest in three years since July 2021," StatsSA said.

South Africa's economy is battling high unemployment, poverty and sluggish growth.

Food inflation

The country's unemployment rate rose to a near record of 33.5% in the second quarter of 2024, StatsSA said earlier this month.

This means 8.4 million people were out of work, up from 5.2 million in 2014, it said.

While food inflation dipped even further from 4.6% in June to 4.5% in July, bread and cereal prices rose by 5.6%, up from 5.2%, the agency said.

Transport inflation softened to 4.2% in July from 5.5% in June, while fuel prices eased for a second consecutive month.

South Africa's central bank has set a target for inflation of between three and six percent. It kept its main interest rate unchanged at 8.25% in July.

➤Click here to follow our WhatsApp channel for more stories.