South Africa CPI rises to 4.5% in May, highest since July 2024

South Africa's annual inflation rate accelerated to 4.5% in May, up from 4.0% in April, marking the highest level recorded since July 2024, according to official data released this week. The increase was driven primarily by sharp rises in fuel and transport costs, though the figure came in below many economists' forecasts.

The monthly increase in the Consumer Price Index was 0.7%, with the transport category being the largest contributor. Fuel prices surged by 14.3% in May alone, leading to an annual increase of 28.7%. Petrol prices were 24.8% higher than a year ago, while diesel prices soared by 53.8%. Excluding fuel, the annual inflation rate remained stable at 3.7%.

Housing and utilities costs were the other major driver, with that category's inflation rate edging up to 5.3%. Electricity prices increased by 9.4% year-on-year, influenced by a recent tariff hike from the state utility Eskom. Municipal rates and water tariffs also rose significantly.

In contrast, food price inflation provided some relief for consumers, moderating to 1.9% in May from 2.9% in April. Meat inflation slowed to 7.3% from 9.4%, while prices for fruits, nuts, and vegetables were lower than a year ago....