According to The South African Biz, the Consumer Confidence Index (CCI) in South Africa decreased to -19 in the second quarter of 2026, down from -7 in the first quarter, indicating a negative sentiment among wealthy South Africans.

South African households are experiencing a two-year high in inflation, reaching 4.5%. This increase in prices is attributed to the ongoing US-Israeli conflict with Iran, which is impacting the economy.

The World Bank has indicated that the economic recovery in Sub-Saharan Africa is losing momentum, projecting a growth rate of 4.1 percent for 2026, the same as in 2025. This figure represents a downward revision of 0.3 percentage points from a previous forecast of 4.4 percent, as noted in the latest Africa Economic Update released in April.

Nedbank announced a downgrade to its 2026 domestic economic output outlook, attributing this change to a mixed economic environment observed in the first five months of the year. The bank also indicated that the central bank is expected to maintain current interest rates in response to rising inflation.

A survey indicates that nearly half of South Africans are concerned about their ability to cope with another interest rate hike, with the next announcement scheduled for 23 July, according to The Citizen Business.

Despite a reduction in load shedding and fewer power cuts in South Africa, electricity bills are increasing. This rise in costs is attributed to significant tariff increases approved by the National Energy Regulator, leading to confusion among consumers about why prices are climbing when the power supply is more stable.