This is the lowest reading since the 4.6% in July 2021.<\/p>\n\n\n\n
Inflation is now close to the midpoint South African Reserve Bank’s inflation target range of 3% to 6%. <\/p>\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/08\/cpi-july.jpg\")
<\/a><\/figure><\/div>\n\n\nOn a month-to-month basis, prices increased 0.9% from June to July, marking an increase from the monthly rise of 0.2% between May and June. <\/p>\n\n\n\n
Fuel keeping it down <\/strong><\/p>\n\n\n\n Despite previously being a major upward driver of inflation, the transport category pushed overall inflation down in July, Stats SA said. <\/p>\n\n\n\n Fuel prices were largely to blame for inflation reaching a 13-year high of 7.8% in July 2022, with transport contributing 44% (3.4% percentage points) to the overall inflation rate. <\/p>\n\n\n\n However, since peaking in July 2022, fuel prices have begun to ease, dropping from R26.74 per\u00a0litre of inland 95-octane petrol in July\u00a02022 to R22.46 per litre in July 2023. <\/p>\n\n\n\n The annual rate for fuel was -16.8% in July 2023, which dragged the transport category down into negative territory for the first time since January 2021. <\/p>\n\n\n Food decline <\/strong><\/p>\n\n\n\n Food inflation also eased in July, with the annual rate for food & non-alcoholic beverages (NAB) category dropping from 11.0% in June to 9.9% in July. <\/p>\n\n\n\n Annual inflation for bread and cereals also dropped from 15.5% in June to 13.1% in July, as the prices of Maize Meal, a crucial staple in many South African diets, dropped by 0.7%. <\/p>\n\n\n\n Annual meat inflation also eased to 5.1% – the fifth consecutive month of decline. <\/p>\n\n\n\n Notable increases <\/strong><\/p>\n\n\n\n However, not all food categories saw a drop. For instance, milk, eggs & cheese increased from 14.1% in June to 14.4% in July. <\/p>\n\n\n\n “Cheese prices are rising sharply, with large annual increases recorded for cheese spread (up 19.5%), cheddar cheese (up 19.0%) and Gouda cheese (up 16,6%),” Stats SA said. <\/p>\n\n\n\n Annual inflation for hot beverages also grew from 8.7% in June to 9.0% in July, with the rate for instant coffee growing from 10.3% to 11.5%.<\/p>\n\n\n\n “If it wasn\u2019t bad enough for coffee drinkers to fork out more for their caffeine fix, sugar prices were up too. White sugar is, on average, 20.8% and brown sugar 22.8% more expensive than a year ago. The sugar, sweets & desserts category recorded an annual inflation rate of 18.7%, up from 16.4% in June. This is the highest reading for this category since May 2017,” Stats SA said. <\/p>\n\n\n\n Inflation for alcoholic beverages also shot up from 6.9% in June to 7.8% in July – annual wine and beer inflation reached 9.8% and 7.4%, respectively. <\/p>\n\n\n\n Stats SA also surveys municipal tariffs every year in July and August and noted that housing and utility costs increased by 2.8% between June and July. <\/p>\n\n\n\n “On average, households are paying 14.5% more for electricity. Water tariffs increased by 9.6% and property rates by 2.9%. A final picture will emerge in the August consumer price index (CPI) release with the completion of the survey,” Stats SA said. <\/p>\n\n\n\n The biggest yearly and monthly changes can be seen below: <\/p>\n\n\n<\/a><\/figure><\/div>\n\n\n