South Africa's Consumer Inflation Up in July

The latest Stats SA data released today indicates that the consumer inflation index or CPI, saw an increased to 3,5% in July, up from 3,0% in June. This marks the highest CPI rate since September 2024, when it was at 3,8%. The Month-on-month increase from June 2025 to July 2025 came in at an average increase of 0,9%.

Household food budgets under pressure

Multiple factors impacting Inflation

Food Inflation Growth Concerning

Annual inflation for food & non-alcoholic beverages, continued to rise, accelerating to 5,7% from 5,1% in June. Meat, vegetables and ‘other food’ fuelled the uptick. Meat, specifically beef, remains the main driver. The annual rate for meat accelerated to 10,5% in July, extending a strong upward trend that began in early 2025.

Inflation in Vegetable prices continued to rise to 14,6% from 13,6% in June, with many other food items in the miscellaneous group ‘other food products’ more expensive than a year ago. Inflation for hot beverages cooled for a third straight month to 8,9% in July, down from a peak of 17,5% recorded in August last year.

Some good news on the coffee front. Instant coffee prices declined slightly between June and July, pulling the annual rate down to its lowest level since January 2024. Prices for cappuccino sachets decreased for a second consecutive month.

The dairy and eggs category remained in deflationary territory. Several products are cheaper than a year ago, including maize-based food drinks, eggs, and certain milk varieties. Prices for cheese, however, continue to rise. Gouda is 7,2% and cheddar 5,5% more expensive than a year ago.

Municipal Tariff Increases and Fuel Costs Driving Inflation Higher

One of the biggest factors impacting inflation at this stage are the increases in municipal tariffs, that are adjusted annually in July when municipalities introduce new budgets. These have long seen multiples of above inflation increases that continue to be. a massive household burden. In addition to increases random levies introduced such as the additional levy the city of Johannesburg charges on pre-paid electricity meters.

Tariffs for water supply increased by 12,1% in 2025, significantly higher than 2024’s rise of 7,5%, recording the sharpest increase since 2018 when tariffs jumped by 12,9%. Electricity climbed by 10,6% in 2025, and while lower than the 11,5% recorded in 2024, it is still three times the current inflation rate.

Refuse collection and sewage removal tariffs were added to the inflation basket this year. Refuse collection rose by 6,6% and sewage removal by 6,5%.

The additional drag on expenses in July was from fuel price increases, that had a 2,6% increase from June following four months of decline.