Inflation rises to 5% as fuel prices continue to hammer household budgets

Inflation

Cape Town – South Africa’s annual consumer inflation accelerated to 5.0% in June 2026, reaching its highest level in two years as surging fuel prices pushed transport costs sharply higher, according to the latest data released by Statistics South Africa (Stats SA).

Inflation rose from 4.5% in May to 5.0% in June, marking the highest annual inflation rate since June 2024, when it stood at 5.1%.

“Annual consumer inflation jumped to 5,0% in June 2026 from 4,5% in May 2026. This is the highest inflation print since June 2024 when the rate was 5,1%,” Stats SA said in a statement.

Prices increased by an average of 0.7% between May and June, matching the monthly increase recorded between April and May.

Fuel prices continue to bite

Transport was the biggest contributor to both annual and monthly inflation, largely due to rising fuel prices.

According to Stats SA, “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 inflation rate for transport climbed to 12.7% in June from 9.4% in May.

Fuel prices increased by 34.3% over the past year, with diesel prices rising by 50.8% and petrol prices by 31.7%.

The higher fuel costs also filtered through to public transport, with passenger transport inflation rising sharply.

“Higher fuel prices had a knock-on effect on passenger transport inflation, which registered a monthly rise of 8,1% in June,” Stats SA said.

Minibus taxi fares rose by 11.5%, while e-hailing services increased by 8.7%, long-distance bus fares by 8.4%, and school transport by 3.7% during the month.

Food inflation eases

Despite the increase in overall inflation, food price pressures continued to soften.

Annual food and non-alcoholic beverages inflation slowed to 1.6% in June, down from 1.9% in May and 2.9% in April.

Stats SA said cereal products recorded “a fifth consecutive month of deflation at -1,5%”, with several staple foods becoming cheaper than a year ago.

The agency noted that “white rice (-13,4%), maize meal (-5,9%), samp (-1,5%) and porridge (-1,3%)” all recorded annual price declines.

Meat inflation also continued to moderate, easing to 5.1% from a peak of 13.5% in January.

However, some meat products remained under pressure, with pork inflation at 13.9%, while processed meats such as sausages (11.8%), corned meat (10.2%) and bacon (8.6%) posted strong annual increases.

Hot beverages also remained expensive, with inflation reaching 7.4%. Black tea rose by 8.3%, while instant coffee increased by 7.0% over the past year.

Rental costs edge higher

Housing costs also increased during the quarter.

Stats SA reported that “actual rents increased by 1,1% from the March quarter, reaching an annual increase of 4,1%.”

Over the past 12 months, rents for townhouses increased by 5.4%, flats by 4.6%, and houses by 3.7%.

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