South Africa’s consumer inflation accelerated to 3.0% year-on-year in June, its highest level in four months, driven largely by rising food prices, Bloomberg reported.

Food and non-alcoholic beverage prices jumped 5.1%, reaching a 15-month peak. The cost of stewing beef surged 21.2%, marking the fastest increase on record amid a foot-and-mouth disease outbreak that disrupted supply. Vegetable prices also climbed significantly, contributing to the overall inflation rise.

Inflation has remained near the lower bound of the Reserve Bank’s 3% to 6% target range for nine consecutive months. Month-over-month, consumer prices increased 0.3% in June, up from 0.2% in May.

The Reserve Bank’s Monetary Policy Committee reduced the repo rate to 7.25% from 7.5% in May. The latest inflation figures may prompt policymakers to cautiously lower borrowing costs by another quarter point at their meeting scheduled for July 31.

Ahead of the inflation release and a key parliamentary budget vote, traders increased expectations for a rate cut next week. Forward-rate agreements now price in 24 basis points of easing, up from 22 basis points the previous day. The FTSE/JSE Africa All Share index gained 0.9%, while yields on benchmark 2035 government bonds fell three basis points to 9.82%. The rand declined 0.2% against the U.S. dollar.

South African Reserve Bank Governor Lesetja Kganyago acknowledged last week the challenges posed by global uncertainties, including Chinese deflation, a weaker dollar, and ongoing U.S. tariff tensions. “There are things that we are not sure about. We do not know in which direction they would go,” he said.