South Africa’s inflation rises to 3.5%, core inflation remains subdued

Published 20/08/2025, 09:54
South Africa’s inflation rises to 3.5%, core inflation remains subdued

Investing.com -- South Africa’s headline inflation rate increased to 3.5% year-over-year in July, up from 3.0% in June, marking the highest reading since September last year.

The inflation figure matched analyst expectations but masked continued weakness in core inflation, which edged up only slightly to 3.0% year-over-year from 2.9% in June.

The rise in headline inflation was primarily driven by a jump in food prices and less pronounced decreases in petrol prices compared to previous months.

The subdued core inflation reading suggests the South African Reserve Bank may have room to continue its monetary easing cycle, as underlying price pressures remain contained despite the headline increase.

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