South African inflation falls to three-year low

South Africa map (FILE PHOTO)

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

Annual consumer price inflation reached 4.6 percent last month, down from 5.1 percent 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.

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

The country’s jobless rate rose to a near record of 33.5 percent 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 percent in June to 4.5 percent in July, bread and cereal prices rose by 5.6 percent, up from 5.2 percent, the agency said.

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Transport inflation softened to 4.2 percent in July from 5.5 percent 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 percent in July.