Rand weakens, July inflation soars to 10-month high, beef prices surge

Stats SA reports that consumer prices surged to their highest in 10 months in July

- YOGASHEN PILLAY

THE rand weakened to R17.70 against the US dollar on Wednesday, its lowest in more than one week, after Statistics South Africa (Stats SA) reported that consumer prices surged to their highest in 10 months in July, putting household food budgets under pressure.

Data from Stats SA on Wednesday showed that the annual headline consumer price inflation (CPI) soared from 3.0% in June to 3.5% in July, driven largely by beef prices on the back of ongoing Foot and Mouth Disease outbreak.

The July inflation print marked the second consecutive monthly increase and was the highest rate since September 2024 when it was 3.8%.

Stats SA's chief director for price statistics, Patrick Kelly, said annual inflation for food and nonalcoholic beverages (NAB) continued to rise, accelerating to 5.7% from 5.1% in June.

"Meat, vegetables and ‘other food’ fuelled the uptick. Meat, specifically beef, remains the main driver. The annual rate for meat accelerated to 10.5% in July, extending a strong upward trend that began in February," Kelly said.