June inflation forecast: What economists are saying about CPI trends

Experts warn that an increase in the consumer price index (CPI) is expected for June when Stats SA makes its announcement on Wednesday.

Economists have warned that an increase in the consumer price index (CPI) is expected for June when Statistics South Africa (StatsSA) makes its announcement on Wednesday.

Johann Els, chief economist at PSG, said that he expected headline inflation to rise from 4.5% in May to around 4.7% in June, reflecting a monthly increase of around 0.5%.

“The biggest impact will once again come from higher petrol prices, following the increase of 143 cents per litre during June. Food inflation should remain fairly moderate, while inflation in most consumer goods is still very subdued, much as we've seen over the past year.”

Els added that while 4.7% is higher than the SA Reserve Bank (Sarb) would like to see, most of this increase is being driven by fuel prices.

June inflation forecast: What economists are saying about CPI trends

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