BY PHUMELELE GAMEDZE
MBABANE- Eswatini’s annual inflation rate eased to 2.5% in July 2026, down from 2.6% in June, offering a positive signal of slower overall price increases for households and businesses.
The latest Consumer Price Index (CPI) report, released by the Central Statistical Office (CSO) on 14 August 2026, shows that the July inflation rate was also 0.3 percentage points lower than the 2.8% recorded in July 2025.
The CPI, which measures changes in the prices of goods and services purchased by households, recorded a -0.1% month-on-month inflation rate in July, compared with 0.1% in June. This means that, on average, prices measured by the CPI decreased slightly between June and July.
The report also shows that inflation for goods stood at 2.9%, while inflation for services was lower at 1.8%.
Food and non-alcoholic beverages recorded annual inflation of -0.8%, meaning prices in this category were lower than they were in July 2025. Bread and cereals recorded a notable annual decline of 3.2%, while meat fell by 0.3%.
Another encouraging movement was recorded in household-related goods. Inflation for furnishing, household equipment and routine household maintenance declined from 3.1% in July 2025 to -0.6% in July 2026.
Alcoholic beverages, tobacco and narcotics also recorded a significant slowdown, falling from 10.3% to 2.6% over the same period.
However, not all categories moved in the same direction. Transport inflation increased from -0.3% to 3.3%, mainly driven by fuels and lubricants and passenger air transport.
Housing and utilities remained the biggest contributor to the headline inflation rate, contributing 1.7 percentage points, followed by transport at 0.5 percentage points and clothing and footwear at 0.3 percentage points. Housing and utilities recorded annual inflation of 5.9%, while clothing and footwear stood at 5.3%.
On a monthly basis, transport recorded a 0.8% decline, largely reflecting lower prices for fuels and lubricants. Furnishing, household equipment and routine household maintenance also fell by 0.5%.
The July figures continue a generally moderate inflation trend recorded in 2026, with annual inflation moving from 2.1% in January to 1.9% in February, 1.6% in March, 2.0% in April, 2.7% in May, 2.6% in June and 2.5% in July.
The CSO said the CPI remains an important economic indicator used to monitor economic performance, support inflation forecasting and targeting, adjust wages and salaries, and deflate national accounts.
The July 2026 CPI report therefore paints a mixed but broadly encouraging picture: while some essential cost pressures, particularly housing and utilities, remain elevated, the overall pace of price increases has continued to moderate.
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(Courtesy Pic)
