South Africans are feeling the pinch as annual consumer inflation climbed to 5% in June, up from 4.5% the previous month, marking the highest rate in two years.

Statistics South Africa (Stats SA) announced on Wednesday that the June figure represents the steepest inflation reading since June 2024, when the rate stood at 5.1%. Prices rose by an average of 0.7% between May and June, matching the increase recorded between April and May.

The rising cost of living comes as households across the country grapple with higher expenses, particularly at the petrol pump and in taxi fares.

Fuel prices drive inflation spike

Transport emerged as the biggest culprit behind the inflation surge, with the sector’s annual rate accelerating sharply to 12.7% in June from 9.4% in May. The increase was driven almost entirely by soaring fuel costs.

Stats SA said fuel prices climbed by 34.3% in the 12 months to June, with diesel prices jumping 50.8% and petrol prices rising 31.7%.

The fuel price increases had a knock-on effect on passenger transport, which rose by 8.1% between May and June alone. This pushed the annual rate for the category to 12.5%, up dramatically from 4% in May.

Commuters bore the brunt of these increases, with minibus taxi fares rising by 11.5% month-on-month, e-hailing services up 8.7%, long-distance bus fares increasing by 8.4% and school transport costs climbing 3.7%.

Food prices offer some relief

In contrast to transport, food and non-alcoholic beverages inflation continued to slow, dipping to 1.6% in June from 1.9% in May and 2.9% in April.

Cereal products recorded a fifth consecutive month of deflation at -1.5%, with several staples now cheaper than a year ago. White rice prices fell by 13.4%, maize meal by 5.9%, samp by 1.5% and porridge by 1.3%.

Meat inflation also showed signs of moderating, easing to 5.1% from a peak of 13.5% in January 2026. Beef mince inflation cooled to 3.9% from May’s 10.6%, while stewing beef entered deflationary territory at -2.7%.

However, pork inflation remained stubbornly high at 13.9%, despite easing for the third consecutive month. Mutton and lamb prices rose by 8.4% annually, while processed meat products including sausages (11.8%), corned meat (10.2%) and bacon (8.6%) all recorded elevated rates.

Hot beverages continued their upward march, with inflation reaching 7.4% in June. Black tea prices rose by 8.3% annually, while instant coffee increased by 7%.

Housing costs climb steadily

Renters also faced higher costs, with actual housing rents rising by 1.1% from the March quarter, bringing the annual increase to 4.1%.

Townhouse rents increased by 5.4% over the past 12 months, flats by 4.6% and houses by 3.7%.