South Africa’s producer price inflation slowed for a second consecutive month to 5.7% in July 2026, down from 7.5% and below the expected 6.1%. Softer increases in coal and petroleum product prices drove the moderation, while the monthly PPI fell 1% after declining 0.1% in June. The sharper monthly drop points to weaker producer pricing power and could eventually ease consumer-inflation pressure, although it may also reflect softer demand and weak economic momentum. The South African Reserve Bank will weigh the producer-price trend alongside the more closely watched CPI when assessing interest rates. Businesses may benefit from lower input costs if selling prices hold, while consumers could eventually see relief, but persistent weakness could compress margins and signal broader economic strain.