South Africa’s consumer inflation rate is going up, but food inflation keeps on going down.
The story of two inflation rates is contained in StatsSA’s inflation data for June 2026.
“Annual consumer inflation jumped to 5,0% in June 2026 from 4,5% in May 2026,” it reported. “This is the highest inflation print since June 2024 when the rate was 5,1%.”
While consumer inflation is at a two-year high, food price inflation slowed further in June, dipping to 1,6% from 1,9% in May and 2,9% in April.
The consumer inflation rate increase was driven by higher fuel prices because of the Iran war. More expensive fuel had a knock-on effect on transport costs, from taxis to bus fares and school transport.
Food price inflation, on the other hand, is going down because of reductions in previously high beef and pork prices, following outbreaks of foot and mouth disease (cattle) and African swine fever (pigs).
However, the Daily Maverick warns that the El Niño weather phenomenon will hit food prices, but not yet.
El Niño is expected to bring hotter and drier conditions in the second half of the year – possibly severely. This would affect next year’s grain harvests, and maize and feed prices.
“Concerns are mounting about the impact of the current El Niño phenomenon, even with abundant supplies from this year’s stout harvest. The ripple effects from that will be felt only in 2027,” the Daily Maverick said.
