In July, inflation in South Africa demonstrated a significant decline, reaching its lowest point in two years while remaining within the targeted range set by the central bank.
According to official data released on Wednesday, the annual consumer price inflation for the previous month decelerated to 4.7%, marking a notable drop from the June figure of 5.4%. This July level is the most subdued since the recorded rate of 4.6% observed in June 2021 as reported by African Insider.
Notably, the easing of food price inflation played a role in this trend, even though it remained one of the significant contributors to the overall consumer price inflation. While food prices experienced moderation in July, their impact on the broader inflation index remains notable.
Beyond South Africa, policymakers across the globe are grappling with elevated inflation rates, primarily driven by the substantial increase in energy and food prices. This inflation surge follows geopolitical events, particularly Russia’s invasion of Ukraine, which has led to heightened market volatility and disruptions in supply chains.
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