Consumer inflation rose to 7.4 percent in June from 6.25 percent in May, mainly due to higher transport and fuel prices, Statistics South Africa said on Wednesday.
In June, the rate reached its highest level since May 2009 (8.0 percent), when the economy was dealing with the negative effects of currency depreciation during the global financial crisis.
During June, the Consumer Price Index (CPI) increased by 1 percent.
In 2021, the annual rate increased, and it continued to rise in 2022.
Global inflation rates have recently spiked, bringing it to the forefront of discussion, especially with regard to monetary policy.
In June, the cost of food and non-alcoholic beverages (NAB) increased by 8% over the previous year.
Food and non-alcoholic beverages (NAB) prices increased by 8 percent in June.
The rate for food and NAB has been the highest since March 2017, when the nation was recovering from a terrible drought.
Food inflation in June 2022 was primarily driven by bread and cereals, meat, and oils and fats.
The annual rate of bread and cereal items increased to 11, 2 percent in June from 8 percent in May.
Brown bread (3, 2 percent), macaroni, and maize meal (5, 2 percent) all saw price increases of 2, 6 percent.
Meat prices increased by 9.5 percent in the year leading up to June, slightly higher than the 9, 4 percent increases seen in May.
As a whole, polony prices have experienced significant increases, with 19 percent being the largest.
The oil and fat index for May increased by 26.9 percent year on year, while the index for June increased by 32.05 percent year on year.
This product category has experienced significant inflation on a consistent basis.
Transportation-related product and service prices increased by an average of 20.0 percent per year.
Transportation-related products and services saw an average annual price increase of 20.0 percent, with monthly increases averaging 4.2 percent.Fuel prices rose by 45.3% in June, marking the largest annual increase since the current CPI series began in 2009.
Significant price increases are being seen by other transportation product group components other than fuel.
Used car prices have increased at an annual rate of -2.9 percent since May 2020, reaching 11, 1 percent in June 2022.
The price of public transportation increased by 14.3 percent from June 2021 to May 2022.
Taxis (2.75 percent), airlines (7.01 percent), and long-distance buses (11.75 percent) all saw monthly increases.
The most current findings of Stats SA’s rental survey, which are used to determine changes in real and imputed rental indices, are included in the CPI for June. When compared to the first quarter of 2022, actual rental rates rose by 0.08 percent, while imputed rental rates rose by 1.01 percent.
Since June 2019, when actual rentals increased by 0.9% and imputed rentals increased by 1 percent between the first and second quarters, these are the largest increases for both categories.