South Africa’s inflation rate experienced a significant decline in July, marking its lowest level in three years.
According to the national statistics agency StatsSA, the annual consumer price inflation rate dropped to 4.6 percent last month from 5.1 percent in June.
This easing of inflation provides some relief to South Africans who have been grappling with rising costs of living.
However, the country’s economy continues to face numerous challenges, including high unemployment, poverty, and sluggish growth.
The unemployment rate in South Africa reached a near-record high of 33.5 percent in the second quarter of 2024, indicating that over 8.4 million people are currently out of work.
This represents a substantial increase from 5.2 million unemployed individuals in 2014.
While food inflation saw a slight decrease from 4.6 percent in June to 4.5 percent in July, prices for essential items like bread and cereals continued to rise.
Transport inflation also softened, but fuel prices remained relatively stable.
In response to these economic pressures, the South African Reserve Bank has maintained its main interest rate at 8.25 percent.
This decision aims to balance the need to control inflation while supporting economic growth.