Economists had expected annual consumer inflation to edge slightly higher in June, with forecasts ranging between 4.7% and 4.8%, largely due to higher fuel prices during the month.
South African consumers faced a sharper increase in the cost of living in June than economists had expected, with annual inflation accelerating to 5% from 4.5% in May, reaching levels last seen in June 2024 as higher transport costs pushed prices higher.
Statistics South Africa said consumer prices rose 0.7% month-on-month, while transport, housing and utilities, and insurance and financial services were the biggest contributors to annual inflation.
Transport made the largest contribution to the annual inflation rate as transport inflation accelerated to 12.7%. Housing and utilities climbed 5.5%, while insurance and financial services moved 5.9% higher.
Food inflation remained relatively subdued despite the stronger headline reading. Annual inflation for food and non-alcoholic beverages measured 1.6%, with cereal products continuing to record deflation at 1.5% and fruit prices down 10% compared with a year earlier.
