Stats SA announced on Wednesday that annual consumer price inflation was 3.0% in June, up from 2.8% in May. The consumer price index (CPI) showed an increase by 0.3% month-on-month in June, with food inflation experiencing specially pronounced rises.
Patrick Kelly, chief director of price statistics at Stats SA, said among other categories of inflation, the annual inflation rate for food and non-alcoholic beverages recorded its highest levels in more than a year.
“After holding steady at 2.8% in April and May, consumer inflation edged higher to 3% in June. The month-on-month change in the CPI was 0.3%. The annual rate for food and non-alcoholic beverages reached a 15-month high of 5.1% in June.
“Meat, particularly beef, continues to be the main driver of food inflation. Beef prices spiked for a third successive month, with high annual and monthly increases recorded for stewing beef, mince and steak.”
Conversely, Kelly said, fuel prices continued a downward trajectory and declined for a fourth consecutive month.
“Fuel is, on average, 11.2% cheaper than a year ago,” Kelly said.
He said the annual change for rents rose from 2.9% in the first quarter to 3% in the second quarter. The rate for imputed rentals also rose slightly from 2.4% to 2.5% over the same period, he said.
The statistical release for June’s CPI said the main contributors to the 3% annual inflation rate were:
- housing and utilities at 4.4%, which contributed 1 percentage point;
- food and non-alcoholic beverages at 5.1%, which contributed 0.9 of a percentage point; and
- alcoholic beverages and tobacco at 4.4%, which contributed 0.2 of a percentage point.
“In June the annual inflation rate for goods was 2.3%, up from 1.8% in May, and services was 3.7%, up from 3.6% in May,” the statistical release said.
The SA Reserve Bank’s monetary policy committee is expected to hold its meeting on rates next week, after which governor Lesetja Kganyago is expected to announce the repo rate on July 31.
Business Times
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.