Consumer inflation ticks slightly to 2.2% in June on fuel price increase
JOHANNESBURG - Annual consumer price index (CPI) inflation ticked up slightly in June as the dominance of fuel price changes recorded in May few months continued.
Statistics South Africa (Stats SA) said today that inflation was 2.2 percent in June from 2.1 percent in May, a month-on-month increase of 0.5 percent.
This was a reversal of the 0.6 percent decline recorded between April and May during the strictest levels of the countrywide lockdown.
Chief director for price statistics at StatsSA Patrick Kelly said the dominance of fuel price changes recorded in the previous few months continued in June, with this increasing by 7.5 percent between May and June.
“Petrol increased by 9.9 percent and diesel by just under 2 percent in June,” Kelly said.
“Despite these monthly increases, fuel is 20 percent cheaper now than it was a year ago. For example, motorists paid R16.76 per litre for inland 95-octane petrol in June 2019. A year later, the price was R13.40 per litre.”
Stats SA said the main contributors to the 2.2 percent annual inflation rate were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services.
Annual food and non-alcoholic beverages inflation was 4.2 percent in June, slightly lower than May’s 4.4 percent.
The monthly rise was 0.3 percent, the same as the increases recorded in the previous three months.
Five out of the 10 food categories reported annual rates higher than the average rate for food and non-alcoholic beverages.
Meat prices increased by 5.2 percent, these have been slower since April. Dairy products reached an increase of 6.4 percent, down from May’s 7.1 percent.
Inflation for fruits was at 10.2 percent, high but down from 16.9 percent recorded in May.
Sugar, sweets and dessert inflation has risen steadily since October 2019 when the rate was 2.9 percent to reach 7.3 percent in June.
Stats SA measures the actual and imputed rentals, which account for 17 percent of the total weight of the CPI basket, in June for the first time since the beginning of lockdown.
Both recorded a monthly increase of 0.1 percent,with the annual rate for actual rentals increasing 1.8 percent and imputed rentals 1.6 percent.