The Consumer Price Index has ticked up once again to 5.1% in July from 4.6% in June above economist’s expectations.
According to data from Stats SA, transport costs were the key contributors due to higher fuel prices. The CPI measures the rate at which prices increase. Fuel prices have been steadily increasing since April due to a combination of higher global oil prices, higher fuel taxes and a weakening rand. On a monthly basis, inflation rose to 0.8% in July from 0.4% in June.
Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol, and energy also rose to 4.3% year-on-year from 4.2%. This has prompted the government to investigate strategies aimed at cushioning consumers from the impact.
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