While economists predicted that inflation will be drifting higher in the second half of the year, the inflation rate actually decreased.
Although economists did not expect the inflation rate to fall in August, it surprisingly did not rise, instead, it slowed.
Fuel and food prices edged lower, as well as various other items in the inflation basket.
According to Statistics SA, annual consumer price inflation pulled back in August, easing to 3.3% from 3,5% in July, thanks to softer food and fuel inflation taking some of the heat off the headline rate.
This graph shows how the inflation rate has changed over the past few years:
The monthly change was also lower and according to Statistics SA, the consumer price index (CPI) decreased by 0.1% between July and August, with four of the 13 categories in the inflation basket registering monthly declines.
These declines were registered for food and non-alcoholic beverages (-0,1%), furnishings, household equipment and routine maintenance (-0,1%), transport (-0,2%) and information and communication (-0,2%).
ALSO READ: Inflation expectations the lowest ever as GDP languishes
Food price inflation in August down 0.5%
According to the inflation data, food and fuel inflation edged lower, with annual inflation for food and non-alcoholic beverages subsiding to 5.2% from 5.7% in July.
Several categories recorded lower rates, including cereal products, fish and other seafood, milk, other dairy products and eggs, fruits and nuts and vegetables.
The inflation rate for cereal products retreated from 2.1% in July to 1.5% in August, with some staples being 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, such as white bread (0.0%), brown bread (+0.4%), macaroni (+0.5%) and spaghetti (+0.6%).
Statistics SA says, on the other hand, some items are notably more expensive, such as samp (+14.8%) and maize meal (+8.2%).
ALSO READ: Bad news for meat lovers in South Africa
Beef and maize meal prices still high, but lowest since 2011 for dairy and eggs
Beef products also continue to register high annual rates, although the monthly price increases in August are the lowest since April this year.
Beef mince recorded a 12-month change of 27.2% and a monthly increase of 0.2%. Stewing beef reached an annual rate of 32.3%, while its monthly change was 0.6%.
Beef steak prices were 28.6% higher than a year ago but down by 1.2% between July and August.
Statistics SA says these low monthly changes follow factory-gate inflation of -7.8% in July for beef carcasses.
The price index for milk, other dairy products and eggs decreased by 1.1%, the lowest annual print since March 2011 when the rate was -1,4%. Prices for fresh full-cream milk decreased by 2.9% between August 2024 and August 2025.
Beetroot prices are sharply higher than a year ago, Statistics SA pointed out, although there was a decrease in July and August.
Products that recorded significant annual price decreases include potatoes, eggs, white rice, hot cereals and corned meat.
The graph below shows food and beverage products that registered notable price changes in August.
ALSO READ: Economists’ expectations for inflation and the repo rate this week
Inflation in other areas, such as fuel and entertainment
In addition, the annual rate for fuel was -5.7%, down from -5.5% recorded in July.
Petrol prices (inland 95-octane) decreased by 28c per litre, resulting in a 1.3% monthly decline. Diesel prices increased by 2.5% in July and August.
Non-food and beverage items that registered sharp annual increases include books (+30.8%), movie tickets (+15.9%) and video games (+14.7%).
