Image Source: Daily Maverick
Local – South Africa’s annual consumer inflation climbed to 5,0% in June 2026, up from 4,5% in May, its highest level in two years. Statistics South Africa said the reading was the steepest since June 2024, when inflation measured 5,1%.
Prices rose by 0,7% on average between May and June, equaling the pace recorded the previous month, as fuel and transport costs continued to weigh on the index.
“Transport was the largest contributor to both the annual and monthly changes in the consumer price index (CPI), mainly underpinned by higher fuel prices. The annual rate for transport accelerated to 12,7% in June from 9,4% in May. Fuel prices climbed by 34,3% in the 12 months to June, driven by increases of 50,8% in diesel prices and 31,7% in petrol prices,” Stats SA said.
The knock-on effect of rising fuel costs was most visible in passenger transport, where prices jumped 8,1% between May and June alone. That pushed the category’s annual inflation rate to 12,5%, up sharply from 4,0% in May, with minibus taxi fares (+11,5%), e-hailing services (+8,7%), long-distance bus fares (+8,4%) and school transport (+3,7%) all posting notable monthly gains.
Food and Beverage Inflation
While transport costs pushed headline inflation higher, food prices moved in the opposite direction, extending a months-long cooling trend. Several household staples were cheaper in June than they were a year earlier.
“Annual food and non-alcoholic beverages (NAB) inflation slowed further in June, dipping to 1,6% from 1,9% in May and 2,9% in April. Cereal products recorded a fifth consecutive month of deflation at -1,5%. Several notable products are cheaper than a year ago, including white rice (-13,4%), maize meal (-5,9%), samp (-1,5%) and porridge (-1,3%),” Stats SA said.
Meat prices told a similar story of easing pressure, even as some cuts remained expensive. Pork inflation eased for a third straight month but held in double digits at 13,9%, while mutton and lamb climbed to 8,4%. Among processed products, sausages, corned meat and bacon posted annual increases of 11,8%, 10,2% and 8,6% respectively.
Housing Costs Edged Higher Over the Same Period
Rental costs added further upward pressure on the index, with actual rents and owners’ equivalent rent updated as part of the quarterly CPI calculation. The adjustment lifted the annual rental inflation rate to its highest point in some time.
Increases varied by property type, with townhouses recording the steepest rise over the past year.
“In June, actual rents rose by 1,1% from the March quarter, bringing the annual increase to 4,1%,” Stats SA said, adding that rent increased 5,4% for townhouses, 4,6% for flats and 3,7% for houses over the past 12 months.
