Consumer price inflation in July was 5.1%, up from 4.6% in June.
Statistics South Africa said on Wednesday that on average, prices increased by 0.8% month on month.
Stats SA's Chief Director for Price Statistics, Patrick Kelly, said the June figure was the highest annual inflation rate since last September.
He said food and non-alcoholic beverages inflation showed an annual increase of 3.4%, which he said was a constant number for the third successive month.
Kelly said cold beverages registered an annual inflation rate of 8.1%, with bottled fizzy drinks increasing by 2.7% from last month alone.
"These increases may reflect that the full past through of the VAT increase and Sugar Tax has reached the consumer," he said.
"In July each year Municipalities increase their service charges. Assessment rates increased by a hefty 14.8% and water tariffs by 11.8%. Electricity fees increased by 6.7%. This is lower than the Nersa ceiling increase of 7.3% but more than 5.3% increase granted to Eskom's direct customers," Kelly added.
Kelly said fuel inflation has hit an annual rate of 25.3%, the highest annual increase for fuel since December 2011 when the rate was 26.2%.
"The average price of 95 petrol inland has increased by R3.16c a litre in the past year. This is about the same as the increase over the previous five years," he concluded.
