South Africans feeling the pain as inflation reaches 13-year high

Inflation has surged in South Africa for a third consecutive month as citizens continue to battle against the rising cost of living.

According to Statistics South Africa (Stats SA), consumer price index (CPI) increased by 7.8% in July compared to the same time last year.

Worst inflation since 2009

This is the fastest inflation the country has seen since 2009, during the global financial crisis.

In June, the CPI increase stood at 7.4%.

Annual consumer price inflation was 7,8% in July, up from 7,4% in June. Price increases for products such as bread & cereals, oils & fats, #fuel and #electricity made a notable impact on this month's reading.

Listen here for more: https://t.co/e7VQuZvF9k#StatsSA #CPI pic.twitter.com/YivwRCUBPN

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November PPI shows absence of price pressure

— Stats SA (@StatsSA) August 24, 2022

Stats SA said the CPI jumped by 1.5% between June 2022 and July 2022, for only the fourth time since 2008.

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The higher rates of inflation means that South Africans are paying more for essential items such as food, fuel and medicine.

Food prices

Food prices have seen massive hikes in recent times.

Stats SA said the annual increase in prices of food and non-alcoholic drinks was 9.7% in July. It was 8.6% in June.

“Bread and cereals inflation continues to quicken, with the annual rate rising to 13.7% from 11.2% in June. The monthly increase was 2.4% in July, with large monthly price increases recorded for maize meal (4.2%), cake flour (6.3%), macaroni (5.0%) and white bread (2.8%),” said Stats SA.

Rice, however, saw prices decreasing by 3.1%.

The biggest increase in food items was seen with fats and oils – 36.2% in July from 32.5% in June.

Annual consumer inflation reached another 13-year high, increasing to 7,8% in July from 7,4% in June. Join Chief Director: Prices Patrick Kelly on @Newzroom405 at 11h15 as he discusses the latest CPI results.#inflation pic.twitter.com/xocxNPQUuc

— Stats SA (@StatsSA) August 24, 2022

Electricity

Price hikes in electricity have also burnt a hole in consumers’ pockets.

“Electricity tariffs increased on average by 7.5%, equivalent to the 7.5% benchmark approved by the National Energy Regulator of South Africa (Nersa). This increase is lower than last year’s rise of 13.8% but higher than the 2020 increase of 6.3%,” said Stats SA.

Fuel price

With prices rising by rising by 9.4%, fuel is now 56.2% more expensive than it was a year ago.

This after the price of a litre of inland 95-octane petrol rose from R17.39 in July 2021 to R26.74 in July 2022. The average price for diesel increased from R16.58 to R26.61 per litre over the same period.

This has also led to an increase in transport prices.

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