Falling inflation doesn't necessarily mean prices are falling — it can simply mean prices are increasing more slowly. That distinction helps explain why people can hear "inflation is coming down" while still feeling that groceries, transport and services remain expensive, and why the SARB may keep rates restrictive even above-target inflation is easing.
Source: South African Reserve Bank — July 2026 Monetary Policy Statement
Frequently Asked Questions
Does 5% inflation mean everything became 5% more expensive?
No — different products and services can rise at very different rates.
Can prices fall while inflation remains positive?
Yes — some individual prices can fall even while the overall price level continues rising.
Why does the SARB target inflation?
Price stability helps households and businesses plan spending, borrowing and investment.