Annual consumer inflation jumped to 5% in June from 4.5% in May, the highest inflation print since the 5.1% recorded for June 2024, according to the latest consumer price inflation (CPI) figures from Stats SA.CPI was widely expected to have risen, amid fuel price pressures and general pressure on utility bills. A repo rate announcement is also expected from South African Reserve Bank (Sarb) governor Lesetja Kganyago, whose scenarios note elevated risks.CPI increased by 0.7% month on month in June 2026, the Stats SA release showed.“The main contributors to the 5.0% annual inflation rate were transport at 12.7% and contributing 1.7 percentage points, housing and utilities at 5.5% and contributing 1.3 percentage points, and insurance and financial services at 5.9% and contributing 0.6 of a percentage point.”Patrick Kelly, head of price statistics at Stats SA, said prices rose by 0.7% on average and transport was the largest contributor to the monthly and annual changes.“This was mainly underpinned by higher fuel prices. Its annual rate accelerated to 12.7% in June from 9.4% in May. Fuel prices climbed by 34.3% in the past 12 months, driven by increases of 50.8% in diesel and 31.7% in petrol.”He said higher fuel prices affected passenger transport inflation, which registered a monthly rise of 8.1% in June.“This took the annual rate for the category to 12.5% from 4% in May. Sharp monthly increases were recorded for minibus taxi fares, which rose by 11.5%, e-hailing services, higher by 8.7%, long-distance bus fares with an increase of 8.4%, and school transport up by 3.7%.”Last week, US CPI came in softer than expected at 3.5% for June, causing markets to lower their rate hike expectations for the US, and both the S&P 500 and Nasdaq ended the day modestly higher, while the Dow traded flat, according to Bianca Botes, MD at Citadel Global.The Sarb’s Monetary Policy Committee (MPC) is holding its meetings this week to determine the latest repo rate, which is scheduled to be announced to the country by Kganyago on Thursday.TimesLIVE