Inflation in South Africa on Wednesday, July 20 increased to its highest level in 13 years as a result of rising prices of food, transport and housing.
“Annual consumer price inflation was 7.4 percent in June 2022, up from 6.5 percent in May, and the highest rate since May 2009,” the statistics agency, StatsSA, said in a statement.
The pickup in inflation in Africa’s most advanced economy comes the day before the South African Reserve Bank is due to announce an interest rate decision.
Analysts expect a further 50 basis point rise in the repo rate, the rate at which commercial banks borrow from the central bank.
That would mark the fifth increase in a row.
June headline inflation was the highest since May 2009, during the global financial crisis.
Statistics SA figures showed food and fuel prices continue to be major drivers of price pressure.
They have soared globally due to the war in Ukraine.
Fuel prices were up 45.3% in June, the largest annual increase since the agency’s consumer price index series began in 2009.
Prices of food and non-alcoholic beverages rose 8.6%, the highest annual rate since March 2017 when the country was recovering from severe drought.
The main groups contributing to high food inflation in June 2022 were bread and cereals, meat, and oils and fats.
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