The annual consumer price inflation decreased to 4.6% from 5.1% in June, according to StatsSA.
This marks the lowest inflation rate since July 2021 after remaining steady in the 5-6% range for ten months.
Despite the dip in inflation, South Africa faces economic challenges, including high unemployment and sluggish growth. The jobless rate rose to nearly 33.5% in the second quarter of 2024, meaning 8.4 million people were unemployed, up from 5.2 million in 2014.
Food inflation slightly decreased from 4.6% in June to 4.5% in July, although bread and cereal prices increased by 5.6%. Transport inflation dropped to 4.2% from 5.5%, supported by declining fuel prices for the second consecutive month.
The central bank has set an inflation target of between three and six percent and kept the main interest rate unchanged at 8.25% in July.