South Africa inflation rises to 4.4% in August

South Africa’s annual consumer inflation rose to 4.4% in August, up from 4.3% in July. This reversal follows the country’s first decline in five months, though the increase was lower than the 4.5% forecast by economists.

Food and non-alcoholic beverage inflation accelerated to 1.1%, marking the first increase in nine months. Specific categories saw rising costs in fish and seafood, dairy, and eggs, while beef prices remained in deflationary territory. Transport costs continue to be a major driver, with an 8.8% annual increase, though fuel inflation slowed slightly as petrol prices fell by 2% between July and August.

Despite the headline rise, core inflation—which excludes volatile items like food and energy—eased to 4.1% from 4.2% in July. The inflation data arrives as the South African Reserve Bank prepares to meet for its latest interest-rate decision, with the current policy rate standing at 7%.