FX.co ★ South Africa Inflation Rate at 2-Year High

South Africa’s annual inflation rate rose for the fourth consecutive month, reaching 5.0% in June 2026, up from 4.5% in May and surpassing market expectations of 4.7%. This was the highest rate since June 2024, largely driven by a steep increase in transport costs (12.7%), reflecting a 34.3% jump in fuel prices amid elevated global energy prices associated with the conflict involving Iran.

Additional upward pressure came from housing and utilities (5.5%), supported by higher prices for electricity, gas and other fuels (3.9%), as well as water supply (6.9%). Inflation also remained elevated in insurance and financial services (5.9%), restaurants and accommodation (5.1%), and alcoholic beverages and tobacco (3.6%), while food inflation inched up to 1.6%.

Meanwhile, core inflation climbed to 4.1%, its highest level since September 2024, indicating broader underlying price pressures. On a monthly basis, consumer prices increased by 0.7% in June.