Consumer inflation accelerated to 5% year-on-year in June from 4.5% in May, data showed on Wednesday, all but sealing the case for another interest rate hike when the South African Reserve Bank (Sarb) concludes its monetary policy meeting on Thursday.The main contributor to the annual inflation rate was transport, which came in at 12.7% and contributed 1.7 percentage points to the headline number, Statistics South Africa said.Graphic: KAREN MOOLMAN (KAREN MOOLMAN) Annual inflation for housing and utilities and insurance and financial services was also up significantly.On a month-on-month basis, prices were up 0.7 % in June compared with May.The June print marks the second straight month of inflation coming in above the 2% to 4% tolerance band of the Bank’s 3% target adopted last year. The Bank has signalled it will not wait for the second-round effects of the oil price shock to emerge before acting to ensure high inflation expectations do not become entrenchedThe bank lifted its policy rate to 7% at its May policy meeting after data showed inflation had jumped to 4% in April from 3.1% previously, driven mainly by higher fuel prices as the US-Iran war strangled global oil supply.Oil prices extended gains to trade near six-week highs on Wednesday as fears of further supply disruptions intensified after US forces struck Iranian military targets for the 11th straight night, Reuters reported.The Bank has signalled it will not wait for the second-round effects of the oil price shock to emerge before acting to ensure high inflation expectations do not become entrenched.“Inflation can be persistently higher after a shock has passed if people start believing higher inflation is normal,” Sarb governor Lesetja Kganyago told the annual Bureau for Economic Research conference last month.“Monetary policy operates with lags, so if you wait for complete proof of second-round effects you are probably too late.”Business Day