Inflation up ticks as food prices climb
Consumer inflation ticked up to 3% in June, up from 2,8% in April and May, driven mainly by sharp increases in food and housing costs, Statistics South Africa announced on Wednesday.
The monthly change in the Consumer Price Index (CPI) was 0,3%, signalling mounting pressure on household budgets.
Stats SA Chief Director for Price Statistics, Patrick Kelly, said food prices were the main drivers of inflation.
"The annual rate for food and non-alcoholic beverages rose to 5,1% in June, the highest in over a year. Meat, especially beef, remains the primary driver.
"Beef prices surged for the third month in a row. Stewing beef jumped 21,2% year-on-year — the fastest pace recorded since the current CPI series began in January 2017. Mince and steak followed with similarly steep increases."
The cost of unprocessed foods, particularly fruits and vegetables, also remained elevated. Products like beetroot, lettuce, and carrots recorded double-digit inflation rates, though peanuts saw a slight decline.
"We’ve seen persistent price pressure in fresh produce categories. This reflects broader supply chain challenges and seasonal effects," Kelly added.
However, there was relief in the dairy aisle, full-cream milk, low-fat milk, and eggs are all cheaper than they were a year ago, pushing the milk, other dairy products & eggs index into deflationary territory, with a -0,5% annual change.
Cheese contributed to a modest 0,3% monthly rise in this category.
Meanwhile, fuel prices dropped for the fourth consecutive month, and are now 11,2% lower than in June 2024.
Inflation remains within the Reserve Bank’s target range of 3%–6%.
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