Consumer inflation drops to 4.9% in June

Consumer inflation drops to 4.9% in June

Headline consumer inflation dropped to 4,9 percent in June after recording a 30-month high in May.

Inflation Photo

Inflation stood at 5.2% in May. 

Stats SA says the monthly increase in the consumer price inflation was 0.2%.

It was 0.1% in May.

Chief Director for Price Statistics, Patrick Kelly, says annual food and non-alcoholic beverages remained unchanged at 6.7%.

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He says excluding food, non-alcoholic beverages and fuel, annual consumer inflation came in at 3.4% in June.

"These relatively high rates come off a low base recorded during the second quarter of 2020 when fuel prices were depressed.

"The three food groups that registered the highest annual increases in June were oils and fats, meats and sugar, sweets and desert."

"Oils and fats has seen seedily increasing prices since February 2019. Meat inflation continued to accelerate to reaching an annual rate of 8.6 percent from a 12-month low of 4.1 percent in August 2020.” 

Fuel prices increased by 27.5% which is lower from then the 37.4% rise in May.

The Reserve Bank’s Monetary Policy Committee is set to announce the latest repo rate on Thursday.

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