Year-on-year consumer price inflation less mortgage costs declined to 7,7% last month from 8,5% in April, Statistics SA (Stats SA) reported on Tuesday.
It said annual food price rises were among the main contributors to the annual percentage change in the consumer price index excluding rates on mortgage bonds (CPIX).
Other factors included increases in the cost of housing, medical care and personal care.
CPIX is the measure used by the SA Reserve Bank to determine its inflation targets, set at between 3% and 6% for this year and the next.
The latest figure is in line with central bank expectations that the CPIX could fall within its target range later this year.
This led the central bank last week to lower the rate at which it lends money to commercial banks, triggering a 1,5% cut in prime interest rates.
Economists last week predicted a continued decline in the CPIX could prompt three more 1% rate cuts before the end of the year.
Stats SA said the year-on-year consumer price index (CPI), also known as headline inflation, came to 7,8% last month from 8,8% in April. Main contributors were annual increases in the cost of housing, food, medical care and health expenses, education and personal care.
The annual percentage change in food prices was 11% last month compared to 11,1% in April. This was mainly due to annual rises in the price of meat, grain products, milk, cheese, eggs and vegetables.
The publication schedule of the CPIX had been changed, and the figure for June would be released on July 29, Stats SA said in a statement in Pretoria. – Sapa