Annual headline inflation in South Africa came down by almost 1% in June, bringing it to its lowest level in almost two years.
Inflation on some food groups have also dropped.
The new figures, published by Stats SA a short while ago, reveal that inflation cooled to 5,4% in June, down 0,9% from May.
It is now below the upper limit of the South African Reserve Bank’s monetary policy target range, and the lowest reading in 20 months, when the rate was 5,0% in October 2021.
The report states too that the 0,9% drop between May and June 2023 is the largest decline since May 2020, when the rate also declined by this amount.
In terms of food price inflation, six of the 12 main categories covered by the consumer price index (CPI) also saw a drop in annual inflation last month. One category remained unchanged while five recorded increases.
Annual goods inflation dropped to 6,3% in June from 8,0% in May and services inflation was slightly lower at 4,5% in June compared with 4,6% in May.
Annual consumer price inflation
Notable annual inflation changes in June:
Food and non-alcoholic beverages:
Overall: 11% in June compared to 14% in March
Food inflation:
- Most recorded decreases
- Sugar, sweets, and desserts increased from 11,9% to 16,4%
- Brown sugar increased to 17,4%
- White sugar increased to 17,1%
- Chocolate slabs increased to 16,2%
- Oils and fats inflation declined by 9,5% (the average price of a 750ml bottle of Sunflower Oil was R35,57 in June)
Alcoholic beverages and tobacco inflation:
- Annual inflation increased to 6,1% from 5,9% in May
- Wine increased to 9,4% from 9,1% in May
- Beer increased to 5,5% from 4,7%
Transport inflation:
- Big decrease from 7,0% in May to 1,8% in June
- The fuel index declined by 8,3% in June 2023 compared with June 2022. The monthly change was -3,1%.
Housing rents inflation:
Increase of 2,7%
CPI Increases in June 2023
