South Africa’s annual inflation rate inched up to 3.5% in July 2025, marking the second consecutive monthly increase and the highest rate in ten months, matching analysts’ expectations. The key drivers of price growth were food & non-alcoholic beverages (5.7% vs 5.1% in June); alcoholic beverages & tobacco (4.6% vs 4.4%) and restaurants & hotels (3% vs 2%). Moreover, prices fell much less for transportation (-1.7% vs -3.3%). The core inflation rate, which excludes food, non-alcoholic beverages, fuel, and energy, rose to 3.0% in July 2025, up from an over four-year low of 2.9% in June. On a monthly basis, consumer prices advanced by 0.9%, the largest increase since February, after a 0.3% rise in June.