JOHANNESBURG, July 22– South Africa’s annual consumer inflation accelerated to a two-year high in June, driven mainly by surging fuel prices amid higher global oil prices, official data showed on Wednesday.
According to Statistics South Africa (Stats SA), annual headline inflation rose to 5 percent in June from 4.5 percent in May, the highest level since June 2024.
Patrick Kelly, chief director for price statistics at Stats SA, said transport was the largest contributor to both annual and monthly inflation as higher fuel prices pushed up transport costs.
“The annual rate for transport accelerated to 12.7 percent in June from 9.4 percent in May. Fuel prices climbed by 34.3 percent over the past 12 months, driven by increases of 50.8 percent in diesel prices and 31.7 percent in petrol prices,” Kelly said.
South Africa adjusts fuel prices monthly based on international oil prices and the rand-U.S. dollar exchange rate. Since April, domestic fuel prices have risen sharply as higher global crude oil prices fed through to the local market.
The increase in fuel costs also lifted passenger transport prices. Passenger transport inflation accelerated to 12.5 percent year on year in June from 4 percent in May, with minibus taxi fares, e-hailing services and long-distance bus fares all recording strong monthly increases, Kelly added.
The higher-than-expected inflation reading has strengthened market expectations that the South African Reserve Bank could raise its benchmark interest rate at its monetary policy meeting scheduled for Thursday. (Namibia Daily News / Xinhua)
