RFA Breakfast Paper - August 19, 2026

South Africa’s Inflation Eases as Fuel and Food Price Pressures Moderate

South Africa’s annual inflation rate eased to 4.3% in July 2026 from a two-year high of

5.0% in June, coming below analysts’ expectations of 4.5% and marking the first

slowdown in five months. The moderation was driven primarily by softer transportation

inflation, which fell to 8.9% from 12.7%, as fuel price inflation declined sharply to

20.6% from 34.3% following the retreat in global crude oil prices from their early

Middle East-conflict highs. Food and non-alcoholic beverage inflation also eased to

0.9% from 1.6%, supported by lower cereal prices and slower meat inflation, while

housing and utilities inflation moderated to 5.2% from 5.5% amid smaller municipal

tariff increases

S&P 500 Rises as Bond Yields Retreat

U.S. equities advanced on Wednesday, the S&P 500 rising 0.31% to 7,715.60, after the

Treasury Department said it would at least double its long-dated debt buybacks, pulling

the 10-year yield down to 4.65% from a 20-month high of 4.75%. Lower borrowing costs

steadied sentiment following Tuesday's chip-led selloff. Health care led the advance—

Moderna soared on positive late-stage cancer-vaccine results and Merck rose more than

11%—while technology and semiconductors stayed under pressure. The NASDAQ added

0.16%.

NGX Falls a Seventh Day on Aradel Slump

The Nigerian Exchange extended its correction for a seventh straight session on

Wednesday, the All-Share Index falling 0.36% to 240,750.47 points as market

capitalisation shed about ₦555.7 billion to ₦155.42 trillion. Selling in oil and gas

heavyweights drove the retreat: Aradel Holdings tumbled 9.99% to ₦1,374.20, sending

the Oil & Gas Index down 4.63%. Market breadth was even at 27 gainers to 27 losers,

pointing to sector rotation rather than broad-based selling. Banking bucked the trend,

its index up 0.54% as Zenith Bank and UBA advanced, while the market's year-to-date

return held at 54.71%.