South Africa June consumer inflation hits 5.0%

South Africa's annual consumer inflation accelerated to 5.0% in June, reaching its highest level in two years and exceeding economists' forecasts, according to official data released on July 22, 2026. The rate rose from 4.5% in May, marking the highest reading since June 2024, when inflation was 5.1%. Prices increased by an average of 0.7% between May and June.

The primary driver of the increase was the transport category, where annual inflation climbed to 12.7% from 9.4% in May, largely due to soaring fuel costs. Statistics South Africa reported that fuel prices increased by 34.3% over the past year, with diesel prices up 50.8% and petrol prices up 31.7%. These higher costs had a direct knock-on effect on passenger transport, which saw a monthly rise of 8.1% in June. Minibus taxi fares increased by 11.5%, while e-hailing services, long-distance bus fares, and school transport also saw significant monthly increases.

In contrast, food price pressures continued to ease. Annual food and non-alcoholic beverages inflation slowed to 1.6% in June. Cereal products recorded a fifth consecutive month of deflation, with staples like white rice, maize meal, samp, and porridge all cheaper...