Headline consumer inflation increased to 3,5% in July from 3,0% in June. This is the highest rate since September 2024, when it was 3,8%. Prices increased on average by 0,9% between June and July.

Household food budgets under pressure

Annual inflation for food & non-alcoholic beverages (NAB) 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 February.

On average, beef prices increased by 28,8% over the past 12 months and by 7,6% between June and July. The average price for stewing beef was R94,80 in July 2024, climbing to R123,87 per kilogram in July 2025. Beef mince rose from R102,95 to R126,79 over the same period.

Vegetable inflation quickened further to an annual 14,6% from 13,6% in June. Although high annual rates were recorded for carrots (+20,7%), lettuce (+17,5%) and tomatoes (+13,7%), prices for these products declined between June and July. Carrots recorded the most significant monthly decline with a drop of 8,8%.

Most items in the miscellaneous group ‘other food products’ were more expensive than a year ago. Those that recorded rates exceeding food & NAB inflation include salad dressing (+6,7%), vinegar (+6,6%), mixed spices (+6,2%) and soup powder (+5,9%).

All other food & NAB categories recorded softer annual rates. 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.

The graph below shows how the family braai has become more expensive, while prices for several breakfast items have eased.

Other notable price changes

Municipal tariffs are adjusted annually in July when municipalities introduce new budgets. 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, lower than the 11,5% recorded in 2024 and lower than the 11,3% increase provided by the National Energy Regulator of South Africa (NERSA) for bulk sales from Eskom to municipalities.

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%.

Fuel prices increased by 2,6% between June and July, following four months of decline. The monthly rise in July lifted the annual rate for fuel from -11,2% in June to -5,5% in July.

For more information, download the July 2025 Consumer Price Index (CPI) statistical release and associated Excel files with indices and average prices here.

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