Consumer inflation increased by 0.9 percent in June to 7.4 percent from 6.5 percent in May, owing primarily to higher transportation and food prices.
Risenga Maluleke, Statistician-General said, “The consumer price index increased by 1.1% month-on-month in June 2022.” The main contributors to the 7.4% annual inflation rate were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services.
Due mostly to rising fuel and food prices, consumers are paying an increasing amount for necessities. Inflation has now reached its highest level since May 2009.
According to Stats SA, the annual rate of growth for bread and cereal goods increased sharply from 8.4 percent in May to 11.2 percent in June.
“Housing and utilities increased by 5.1% year-on-year and contributed 1.2 percentage points.” Transport increased by 20.0% year on year and contributed 2.7 percentage points. Miscellaneous goods and services increased by 4.0% year-on-year and contributed 0.6 of a percentage point. “In June, the annual inflation rate for goods was 11.0%, up from 9.5% in May; and for services, it was 3.9%, up from 3.6% in May,” Maluleke said.
In June, the annual rate of price growth for food and nonalcoholic beverages was 8.6 percent, the highest since March 2017.
The fact that staples like bread and cereal, meat, oils, and fats are the key culprits behind excessive food inflation just makes the situation worse.
The average monthly food expenditure in South African households is R6,000, far exceeding the legal minimum income.
Brown bread increased by 3.2 percent, maize meal by 5.2 percent, and pasta by 3 percent.
Meat price growth in the 12 months leading up to June was 9.5%, a 0.10% increase over the 9.4% recorded in May, with French polony posting the highest annual increase of 19%. Significant price increases are prevalent throughout the group, with French polony posting the highest annual increase of 19%.
Since May 2021, there have been annual growth in oil and fat prices, which is at a high level.
Taxi fees rose by 2.7%, airfares by 7.1%, and long-distance bus fares by 11.7%, while public transportation costs soared by 14.3% from June 2021 to June 2022.