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<\/a><\/figure><\/div>\n\nInflation has ticked downwards in South Africa in August, surprising against market and economist expectations of a small lift.<\/p>\n\n\n\n
Annual consumer price inflation dropped from 3.5% in July 2025 to 3.3% in August 2025. Softer food and fuel inflation took some heat off the headline rate.<\/p>\n\n\n\n
Market analysts and economists anticipated a small hike in inflation for the month, with consensus sitting around 3.6% to 3.7%. A drop in inflation came a surprise.<\/p>\n\n\n\n
CPI decreased by 0.1% month-on-month in August 2025, with four of the 13 categories seeing monthly declines. <\/p>\n\n\n\n
Annual inflation for food & non-alocholic beverages subsided to 5.2% from 5.7% in July.<\/p>\n\n\n\n
Several categories recorded lower rates, including cereal products; fish & other seafood; milk, other dairy products & eggs; fruits & nuts; and vegetables.<\/p>\n\n\n\n
Some staples are cheaper than a year ago, including hot cereals (-7.8%) and white rice (-7.2%). Bread and pasta products recorded zero or low price increases. <\/p>\n\n\n\n
However, other staple items are becoming far more expensive, including samp (+14.8%) and maize meal (+8.2%).<\/p>\n\n\n\n
Beef products continued to register high annual rates, even if the monthly price increase in August was the lowest since April. <\/p>\n\n\n\n
Beef mince saw a 12-month change of 27.2% and a monthly rise of 0.2%. Stewing beef grew at an annual rate of 32.3% while its monthly change was 0.6%.<\/p>\n\n\n\n
Beef steak prices were 28.6% higher than a year ago, even if they were down by 1.2% between July and August.<\/p>\n\n\n\n
The rise in beef prices follows an outbreak of foot and mouth disease at the country\u2019s largest feedlots, which put extreme pressure on supply.<\/p>\n\n\n\n
However, the low monthly changes follow factory-gate inflation of -7.8% in July for beef carcasses.<\/p>\n\n\n\n
The price index for milk and other daily products and eggs declined by 1.1%, the lowest annual print since March 2011 when the rate was 1.4%. <\/p>\n\n\n\n
Prices for fresh full-cream milk decreased by 2.9% between August 2024 and August 2025.<\/p>\n\n\n\n
The annual rate for fuel was -5.7%, down from -5.5% recorded in July. Petrol prices decreased 28c per litre, resulting in a 1.3% monthly decline.<\/p>\n\n\n\n
That said, diesel prices increased by 2.5% between July and August. <\/p>\n\n\n\n
Overall, beetroot prices saw the largest rise, climbing 71.4%, even if they declined between July and August. <\/p>\n\n\n\n
Products recorded significant annual price decreases include potatoes, eggs, white rice, hot cereals and corned meat.<\/p>\n\n\n\n
Non-food and beverage items that registered sharp annual increases include books (+30.8%), movie tickets (+15.9%) and video games (+14.7%).<\/p>\n\n\n
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