Consumer price index roses by 5.3 percent yearly in July compared with 5 percent in June, Statistics South Africa said on Wednesday.
Business Day newspaper based in Johannesburg said this figure was slightly more than the expected rate of 5.2 percent.
The rise was driven mainly by higher prices for utility services such as electricity and housing, with a substantial contribution from food prices, the figures from Statistics SA showed.
"This figure shows that inflation pressures are becoming more broad-based in the economy, but not to the extent that the Reserve Bank will be concerned," said Absa Capital economist Jeffrey Schultz.
South African Reserve Bank governor Gill Marcus signaled yesterday deep concern over the fragility of the economy's recovery, suggesting that interest rate hikes are not on the cards.