By: Siphelele Dludla – IOL Business

The consumer price inflation in South Africa has edged upwards, reaching 3% in June after holding steady at 2.8% for the previous two months.

This increase in inflation, the highest in four months, indicates a growing pressure on household budgets, particularly due to escalating costs in the food and non-alcoholic beverages sector.

Statistics South Africa (Stats SA) said the consumer price index (CPI) revealed a month-on-month change of 0.3% in June, suggesting that while inflation remains relatively low, it is inching higher due to sharp increases in certain food categories.

Stats SA chief director of price statistics, Patrick Kelly, said the year-on-year rate for food and non-alcoholic beverages has notably surged to a 15-month high of 5.1%, with meat prices—especially beef—being the primary culprit behind this uptick.

"Meat – particularly beef – continues to be the main driver of food inflation," Kelly said.

"Beef prices spiked for a third successive month, with high annual and monthly increases recorded for stewing beef, mince and steak. Stewing beef rose by an annual 21.2%, the fastest pace on record since the current CPI series began in January 2017."

However, it was not just beef that has contributed to the rising food inflation.

Other unprocessed food items have also shown significant price increases, with fruits and nuts, as well as vegetables, remaining in double-digit inflation territory for the second month in a row.

Items such as beetroot, lettuce, and carrots have been particularly hard-hit, further straining the average consumer's wallet. Contrarily, peanuts have shown a slight reduction in price.

In a somewhat positive turn, Stats SA said there have been signs of cooling inflation in several other food categories. Notably, prices for white rice, hot cereals, and cold cereals have decreased, which has softened the annual rate for the cereal products category.

Though maize meal continues to see high annual increases, its month-on-month change in June was a modest 0.4%, the lowest increase since November 2024.

Some dairy products have also experienced price reductions compared to last year. Fresh full-cream milk, fresh low-fat milk, and eggs have all recorded lower prices, resulting in the milk, other dairy products, and eggs index shifting into deflationary territory with an annual change of -0.5%.

Despite this annual decline, the monthly rise of 0.3%—the highest since August 2024—shows that consumers are still facing fluctuating prices, particularly in cheese products which have contributed significantly to this increase.

As consumers grapple with these rising food prices, the overall increase in the inflation may serve as a warning of potential challenges ahead for the South African economy.

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