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South Africa’s inflation rate reached 7.4% in June from 6.5% in May. The official agency revealed this – Statistics South Africa recently. Incidentally, it is the highest rate since May 2009 when the inflation rate was 8 %
South Africa’s inflation rate reached 7.4% in June from 6.5% in May. The official agency revealed this – Statistics South Africa recently. Incidentally, it is the highest rate since May 2009 when the inflation rate was 8 %.
The main contributors to the 7,4% annual inflation rate were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services, the agency pointed out. Prices of food and non-alcoholic beverages increased by 8,6% year on year.
The weightage of this category is high while computing the inflation index. It has contributed 1,5 percentage points to the total consumer price index of 7.4%. The South African Reserve Bank’s target range of inflation was 3%-6%. It was the highest reading since May of 2009 as prices continued to accelerate mostly for transport (20% vs 15.7% in May), on account of fuels; and food & non-alcoholic beverages (8.6% vs 7.6%), particularly oils and fats (32.5%). Costs were also higher for housing & utilities (5.1% vs 4.9%), namely electricity and other fuels (14.5%); and miscellaneous goods & services (4% vs 3.9%).
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The annual core inflation, which excludes prices of food, non-alcoholic beverages, fuel, and energy, rose to 4.4% in June, the highest since March of 2019, from 4.1% in the prior month. On a monthly basis, consumer prices were up 1.1%, after increasing 0.7% in May and above market forecasts of a 0.8% rise.
