Inflation hits 5-year excessive in South Africa – right here’s what’s costlier

Statistics South Africa has revealed its newest shopper worth index, displaying that annual shopper worth inflation has damaged by means of the higher restrict of the Reserve Financial institution’s goal vary.

Inflation was recorded at 6.5% in Might 2022, up from 5.9% in April 2022.

That is the best studying since January 2017 when the speed was 6.6%, with inflation now greater than the higher restrict of the South African Reserve Financial institution’s financial coverage goal vary of 6%, pointing to additional rate of interest hikes in July.

Transport and meals and non-alcoholic drinks (NAB) accounted for simply over half of the annual price, with sharp worth will increase recorded in each classes. Gasoline, particularly, continues to be a serious contributor: if the impression of gas is faraway from the CPI studying in Might, the headline price falls to five.1% from 6.5%.

Diesel costs jumped by 8.1% between April and Might, taking the annual price to over 45%. The typical worth of a litre of diesel in Might 2021 was R16.20 – which means it prices R729 to fill a 45-litre tank. Twelve months later, with the typical worth at R23.67 per litre, filling the identical tank price R1,065.

Petrol costs moderated between April and Might, edging decrease by 0.7%. Regardless of this decline, petrol is sort of 27% costlier than it was in Might 2021.

A number of the largest annual worth will increase (Might 2021 vs Might 2022) had been recorded for the next items and providers:

  • Gasoline: +32.5% 
  • Electrical energy and different fuels: +14.4% 
  • Public transport: +12.5%
  • Meat: +9.4%
  • Bread and cereals: +8.4%
  • Wine: +7.9%
  • Beer: +7.8% 
  • Fish: +6.2% 

Costs for meals and non-alcoholic drinks jumped by 2.1% between April and Might, representing the biggest month-to-month improve since February 2016 when the month-to-month rise was additionally 2.1%. At the moment the nation was experiencing a extreme drought.

The oils and fat product group continues to witness sustained ranges of excessive inflation. The annual price was 26.9% in Might, representing the seventeenth month that the speed has been above 10%. Costs jumped by 10.1% between April and Might, representing the primary time since 1997 that the month-to-month price was above 10%.

Sunflower oil, the product with the best weight within the oils and fat group, is sort of 40% costlier than it was a yr in the past. Costs jumped by 16.1% between April and Might.

The month-to-month price for bread and cereals was 3.4%, taking the annual price to eight.4%. Maize meal recorded a month-to-month improve of 5.1% and a loaf of white bread was 3.7% costlier.

Annual meat inflation has remained above the 6% mark since November 2020, with the studying for Might 2022 at 9.4%. Costs for individually fast frozen (IQF) rooster parts and stewing beef elevated by 13.7% and 12.2% respectively within the twelve months to Might.

Learn: Minimal wage adjustments proposed for South Africa


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