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# South Africa’s food inflation just fell to its lowest level since the 2010 Soccer World Cup
- URL: https://www.businessbagel.com/beef-bread-and-maize-meal-pulled-south-african-food-inflation-to-a-16-year-low/
- Published: 2026-08-21T03:00:00.000Z
- Updated: 2026-08-21T02:59:59.000Z
- Description: Food and drink inflation came in at 0,9% in July, the lowest since the month South Africa hosted the World Cup, and the rand had a good day for reasons decided in Washington.
- Author: Christian Maidman
- Tags: Economy, Business Bagel News

Cheaper mince does not usually make the national news. In July it moved the number. Statistics South Africa put headline inflation at 4,3% for the month, down from 5,0% in June and the first cooling in five months, against the 4,5% economists polled by Reuters and Bloomberg had expected.

## What actually got cheaper

Food and non-alcoholic beverages came in at 0,9%, the lowest reading in more than 16 years. The last time it was lower was June 2010, at 0,7%, the month South Africa hosted the World Cup. Beef did most of the work as foot-and-mouth disease effects faded: stewing beef was 7,9% cheaper than a year earlier, steak 6,1% cheaper and mince 5,8% cheaper. Cereal products fell 2,0% over the year, with maize meal down 3,1% and white bread down 0,6% on the month. Processed meat went the other way, corned meat up 11,8% and sausages up 6,2%.

Two other things helped. Municipalities put through smaller July increases than in 2025, with electricity tariffs up 8,1% against 10,4% a year earlier and water up 10,2% against 12,1%. Petrol fell 7,1% and diesel 11,7% between June and July, though both are still far dearer than a year ago, petrol by 19,3% and diesel by 28,8%.

## The other good number came from Washington

The rand had a good day on Wednesday too, and none of it was local. The US Treasury announced it would at least double the size of its liquidity support buybacks in longer-dated government bonds, taking the maximum from $2 billion per operation to at least $4 billion from 9 September. The dollar fell the most in three weeks, 30-year yields dropped about eight basis points, and the rand strengthened from R16.25 to below R16.08 within minutes of the announcement, its best level in more than five months. The JSE All Share closed above 116 000 points, up more than 2.4% on the day.

That matters at the till as well as on a screen. A firmer rand holds down import prices, fuel included, which the Reserve Bank named in July as one reason goods prices had stayed contained.

The Bank left its policy rate at 7% that month and next decides on 23 September, with one more inflation print landing earlier the same morning. Agbiz economist Wandile Sihlobo credits the 16-year low to large supplies off an excellent harvest, helped by the La Nina rains in the season now closing. Diesel rose again in August, and both fuels are set to go up in September.