Fuel is 56.2 percent more expensive than it was 12 months ago while bread, cereals, oils and fats and electricity contribute to surge in prices.
Consumer inflation in SA has accelerated to another 13-year high amid a relentless rise in fuel and food prices.
Inflation was compounded by the annual increase in municipal service charges.
Statistics SA said today the annual headline consumer inflation surged to 7.8 percent in July from 7.4 percent in June.
This inflation print was the highest since 2008 at the beginning of the current Consumer Price Index (CPI) series.
This CPI print was also above market expectations of a 7.7 percent rise, and continued staying above the upper limit of the South African Reserve Bank’s target range of 3-6 percent.
Stats SA said that transport; food and non-alcoholic beverages (NAB) and housing and utilities continued to place upward pressure on the annual inflation rate.
Stats SA chief director for price statistics Patrick Kelly said the annual rate for food and NAB was 9,7% in July, higher than the 8,6% reading in June.
Kelly said bread and cereals, oils and fats, fuel and electricity all made a notable impact on this month’s reading.
“Bread and cereals inflation continues to quicken, with the annual rate rising to 13.7 percent from 11.2 percent in June; the monthly increase was 2.4 percent in July, with large monthly price increases recorded for maize meal, cake flour, macaroni and white bread,” Kelly said.
“Rice bucked the trend, with prices decreasing by 3.1 percent. Oils and fats continue to register the highest annual rate of increase among food products, accelerating to 36.2 percent in July from 32.5 percent in June.”
Electricity tariffs also increased on average by 7.5 percent, equivalent to the benchmark approved by the national energy regulator, as municipalities increase service charges in July every year.
Together with the rise in electricity tariffs, Kelly said consumers also had to contend with further fuel price increases.
Transport costs were up by 4.8 percent between June and July, with fuel rising by 9.4 percent.
“Fuel is 56.2 percent more expensive than it was 12 months ago, with the price of a litre of inland 95-octane petrol rising from R17.39 in July 2021 to R26.74 in July 2022,” he said.
“Those relying on public transport did not escape the pain. Taxi fares jumped in July too, rising by 9 percent from June and taking the annual rate to 16.4 percent.”
On a monthly basis, consumer prices inched up by 1.5 percent, after increasing 1.1 percent in June and above market forecasts of a 1.4 percent rise.
BUSINESS REPORT