The US and Iran peace framework has helped drive oil prices lower, offering hope for reduced inflation and possible rate cuts, but household budgets remain under strain.
South Africa's annual inflation rate accelerated to 4.5% in May, driven largely by higher fuel prices and rising transport costs, but economists believe a recent decline in global oil prices and a strengthening rand could help ease price pressures in the months ahead.
The latest Consumer Price Index (CPI) data from Statistics South Africa showed inflation rising from 4% in April to 4.5% in May, with transport costs increasing 9.4% year on year and housing and utilities climbing 5.3%.
Fuel prices were 28.7% higher than a year ago.
The increase came as motorists and businesses absorbed the impact of rising diesel and petrol prices, compounded by earlier rand weakness.
