South Africa’s inflation rate slowed more than expected in July, giving households some relief after prices rose sharply in the first half of the year.

Annual consumer inflation fell to 4.3% from 5% in June, its first decline in five months, Statistics South Africa said Wednesday. The reading was below the 4.5% economists had expected.

The slowdown was helped by lower fuel prices, softer food inflation and smaller municipal tariff increases. The figures also ease some pressure on the South African Reserve Bank as it considers how long to keep interest rates at current levels.

Still, the improvement may not last. Higher global oil prices following renewed U.S.-Iran tensions could push transport and other costs higher in the months ahead, analysts said.

Food and fuel prices provide relief

Food and non-alcoholic beverage inflation fell to 0.9% in July, its lowest level in more than 16 years, helped by slower increases in cereal and meat prices.

Fuel costs also dropped sharply. Petrol prices fell 7.1% and diesel prices declined 11.7% between June and July, pushing annual fuel inflation down to 20.6% from 34.3% in June.

Inflation remains above target

Despite the July decline, inflation remains above the central bank’s 3% target. Housing and utilities, transport, and insurance and financial services remained among the biggest contributors to annual inflation.

The Reserve Bank surprised investors in July by leaving its key interest rate unchanged. It said monetary policy was restrictive enough to bring inflation back to target within two years.

Reserve Bank faces oil price risk

The South African Reserve Bank is responsible for monetary policy and uses interest rates to keep inflation under control while supporting economic stability. Its next policy decision is due Sept. 23.

August inflation data will be released the same day, giving policymakers a fresh view of whether July’s improvement is holding. A renewed rise in oil prices could complicate the bank’s decision and keep pressure on consumers.