Consumer inflation quickens to 5% in May
Headline consumer price inflation hit a 30-month high in May, rising to 5,2% from 4,4% in April.
Stats SA says Consumer Price Inflation (CPI) increased by 0,1% month-on-month in May.
The organisation’s Marietjie Bennett says inflation is at its highest point since November 2018.
The South African Reserve Bank’s target band for inflation is between 3 and 6%.
“This is the highest reading since November 2018, when the rate was also 5,2%. The 5.2% annual change in May comes from a low base recorded in May 2020, when the food prices were low,” Bennet says.
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“The main contributing reasons to May’s inflation were transport, food and non-alcoholic beverages. Despite a small monthly drop of the fuel price in May, the annual increase quickened to 37.4% from 21.4% in April.
“Petrol prices were 41.8% higher in May, compared to the same month the previous year.”
Annual food and non-alcoholic beverage inflation also accelerated to 6.7% in May from 6.3% in April.
