Annual consumer inflation in South Africa jumped to 7.4% in June 2022 from 6.5% in May 2022, according to Stats SA, South African government statistics body.
Mainly driven by rising transport and food prices, the government said that the June 2022 rate is the highest reading since May 2009 (8.0%) when the economy was facing the headwind of currency depreciation during the global financial crisis.
Fuel prices were up by 45.3% in June 2022, representing the largest annual increase for fuel since the current CPI series began in 2009.
Here is another chart indicating South African inflation data over the last 1 year:
The Consumer Price Index (CPI) increased by 1.1% between May and June. The annual rate rose during 2021, and continued its upward trajectory in the first half of 2022. Many countries around the globe have experienced rising inflation in recent months, making it a hot topic for debate particularly in the area of monetary policy.
Prices of food and non-alcoholic beverages (NAB) increased by 8.6% year-on-year in June 2022. This is the highest annual rate for food and NAB since March 2017 when the country was recovering from severe drought.
The main foods contributing to high food inflation in June 2022 were:
- Bread and cereals
- Oils and fats
Transport goods and services recorded an average annual price increase of 20.0% and a monthly rise of 4.2%.
A day after the inflation data for June 2022 was released, the South African Reserve Bank raised its main benchmark rate by three-quarters of a percentage point to 5.50%, which is noted as the highest raise in borrowing rates in 20 years.