Inflation dips for sixth month to 2.8%

MBABANE – Eswatini’s inflation rate has dipped for the sixth consecutive month, reaching 2.8 per cent in July 2025, according to the latest Consumer Price Index (CPI) report released by the Central Statistical Office (CSO).

This marks a 0.1 percentage point decline from June’s 2.9 per cent and is significantly lower than the 4.2 per cent recorded in July 2024.

The decline underscores an easing of price pressures across much of the economy, providing a measure of relief to both consumers and businesses after a period of volatile costs driven by regional and global shocks.

Inflation is the rate at which the general level of prices for goods and services in an economy rises over time. It is measured through the Consumer Price Index (CPI), which tracks the cost of a representative basket of goods and services that households typically consume — from food and housing to clothing, transport and leisure.

According to economists, when inflation is high, the purchasing power of money falls, meaning households can buy fewer goods and services with the same income. For businesses, high inflation can raise input costs, compress margins and create uncertainty when setting prices. Conversely, when inflation slows, consumers can stretch their budgets further, while businesses enjoy greater predictability in planning investments and operations.

Eswatini’s steady decline in inflation to below 3 per cent means that the cost of living is stabilising. While this does not imply prices are falling overall, it does mean they are rising at a slower pace than before. This is particularly important for lower-income households, for whom even small price increases in essentials such as food and electricity can be burdensome.

The July data reveals that inflation dynamics remain mixed across different categories. Goods inflation stood at 3.1 per cent, while services inflation was lower at 2.4 per cent. Month-on-month, prices dipped by 0.1 per cent compared to June, mainly due to falling costs in food and recreation categories.

Full article available in our paper.