Fuel has pushed inflation to a 21-month high.
South Africa’s annual inflation rate accelerated to 4.5% in May from 4% in April, pushing consumer price growth close to its highest level in almost 22 months as fuel and transport costs continued to ripple through the economy.
Statistics South Africa said consumer prices increased by 0.7% month-on-month in May, with transport and housing and utilities emerging as the biggest contributors to headline inflation.
The latest reading is creeping towards the 4.6% recorded in July 2024, which remains the highest annual inflation rate over the past 22 months.
Despite fuel remaining the biggest pressure point, Standard Bank doesn’t anticipate another rate hike as other pressure points such as food have come down.
