Major petrol price and food price win for South Africa comes with a big catch

• The headline inflation rate cooled for the first time in five months to 4.3% in July.
• The lower inflation rate was attributed to softer food inflation, lower municipal tariff increases, and a monthly decline in fuel prices.
• Despite the temporary dip, diesel prices are expected to rise again in September, potentially pushing inflation back up to 5.0% y/y.