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 are feeling a sharper squeeze on household budgets after inflation rose to 5% in June, driven mainly by soaring transport costs, higher fuel prices and rising housing expenses.
Statistics South Africa said annual consumer inflation accelerated from 4.5% in May to 5% in June, a higher increase than economists had expected and the highest level since June last year.
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.
