South Africa's inflation climbs to 5% as fuel prices drive costs higher

The inflation rate increased from 4.5% in May, while consumer prices rose by an average of 0.7% between May and June, matching the monthly increase recorded in the previous month.

South Africa's annual consumer inflation rose to 5% in June 2026, marking its highest level in two years as rising fuel costs pushed transport prices sharply higher, according to the latest figures released by Statistics South Africa (Stats SA). The inflation rate increased from 4.5% in May, while consumer prices rose by an average of 0.7% between May and June, matching the monthly increase recorded in the previous month.

Fuel prices push transport costs sharply higher

Transport was the biggest contributor to the rise in inflation, with the annual transport inflation rate accelerating to 12.7% in June from 9.4% in May. Fuel prices surged by 34.3% over the past year, driven by a 50.8% increase in diesel prices and a 31.7% rise in petrol prices. The higher cost of fuel also filtered through to public transport, lifting passenger transport inflation by 8.1% during June alone.

Minibus taxi fares recorded the steepest monthly increase at 11.5%, followed by e-hailing services at 8.7%, long-distance bus fares at 8.4% and school transport costs at 3.7%.

Food inflation continues to ease

While transport costs climbed, food and non-alcoholic beverage inflation continued to slow, falling to 1.6% in June from 1.9% in May and 2.9% in April. Cereal products remained cheaper than a year earlier for the fifth consecutive month, with white rice down 13.4%, maize meal falling 5.9%, samp declining 1.5% and porridge dropping 1.3%.

Meat price inflation also continued to moderate. The annual inflation rate for meat eased to 5.1%, down from its January peak of 13.5%. Beef prices showed noticeable improvement, with beef mince inflation slowing to 3.9%, while stewing beef entered deflation after prices fell 2.7% compared with a year earlier.

Some food items remain under pressure

Despite the easing trend, several food products continued to record strong price increases. Pork inflation remained high at 13.9%, while mutton and lamb prices rose by 8.4% over the year. Processed meat products also became more expensive, with sausages increasing by 11.8%, corned meat by 10.2% and bacon by 8.6%. Hot beverage prices stayed elevated, with annual inflation reaching 7.4%. Black tea prices increased by 8.3%, while instant coffee rose by 7%.

Housing costs also edged higher during the second quarter. Actual rental prices increased by 1.1% compared with the March quarter, lifting annual rental inflation to 4.1%. Over the past year, rents rose by 5.4% for townhouses, 4.6% for flats and 3.7% for houses.