South Africa’s inflation cooled to 3.3% in August, marking its lowest rate in 10 months, according to Statistics SA. This follows a 3.5% rate in July, offering relief for consumers and possibly impacting Thursday’s interest rate decision by the Reserve Bank.
Driving this decline were cheaper food and transport costs, which helped slow the Consumer Price Index by 0.1% month-on-month, after a 0.9% rise in July.
Inflation Highlights:
- Food & Non-Alcoholic Beverages: Down 0.1% m/m, 5.2% y/y (from 5.7% in July)
- Cereal: 1.5% y/y (from 2.1%)
- Hot cereals: -7.8%, White rice: -7.2%, Fresh milk: -2.9%
- Transport: -0.2% m/m, petrol down 1.3%
- Fuel inflation: -5.7% y/y
- Core inflation: Slight rise to 3.1% y/y
Some food items still stung:
- Maize meal: +8.2% m/m
- Samp: +14.8% y/y
- Beef mince: +27.2% y/y, +0.2% m/m
Non-food spikes:
- Books: +30.8%, Movie tickets: +15.9%, Games: +14.7%
Stats SA’s Patrick Kelly said the drop was thanks to cheaper basics like cereals, milk, and vegetables—though beef prices are still high due to earlier supply problems.
