South Africa has improved its position by 10 places in the World Competitiveness Ranking, with the highest score being for prices, ranked seventh. This improvement reflects the South African Reserve Bank's efforts to achieve a 3% inflation target, according to The South African Biz.

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.

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.

South African motorists will experience a significant reduction in fuel prices starting Wednesday, 1 July, following one of the largest monthly price cuts in recent years.

South Africa's economy contracted by 0.2% in the three months through June, ending a streak of growth, according to Statistics South Africa. The decline follows revised growth of 0.4% in the prior quarter. Moneyweb reports the downturn as the impact of the war in Iran takes a toll on the country's economic performance.

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.