{"id":867076,"date":"2026-07-22T10:38:22","date_gmt":"2026-07-22T08:38:22","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=867076"},"modified":"2026-07-22T10:38:24","modified_gmt":"2026-07-22T08:38:24","slug":"inflation-skyrockets-to-5-0-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/867076\/inflation-skyrockets-to-5-0-in-south-africa\/","title":{"rendered":"Inflation skyrockets to 5.0% in South Africa"},"content":{"rendered":"\n

Consumer Price inflation skyrocketed to 5.0% in June 2026, and the South African Reserve Bank (SARB) is likely to raise interest rates this week. <\/p>\n\n\n\n

Stats SA said that annual consumer price inflation was 5.0% in June 2026, up from 4.5% in May 2026. CPI increased by 0.7% month-on-month in June 2026.<\/p>\n\n\n\n

Stats SA said the main contributor to the increases was transport, up 12.7% year-on-year, accounting for 1.7 percentage points. <\/p>\n\n\n\n

Petrol and fuel prices rose rapidly following the United States attacks on Iran and the subsequent closure of the Strait of Hormuz, where around 30% of the world’s oil flows. <\/p>\n\n\n\n

While Iran and the United States signed a peace agreement last month, it has already been broken, heightening uncertainty about what will happen in the region. <\/p>\n\n\n\n

Housing and utilities (up 5.5% and contributing 1.3 percentage points) and insurance and financial services (5.9% and contributing 0.6 of a percentage point) were also high in June. <\/p>\n\n\n\n

The latest inflation expectations were above estimates of around 4.7% for the month and sit well above the SARB’s 3% target range. <\/p>\n\n\n\n

The Monetary Policy Committee (MPC) of the SARB meets tomorrow, with economists largely expecting a 25 basis point hike. <\/p>\n\n\n\n

While the MPC bases its interest rate expectations on where inflation is expected to be, analysts expect inflation to hover around 4% in 2026. <\/p>\n\n\n\n

The likely 25 basis point hike will bring the repo rate to 7.25% and the prime rate to 11.75%. <\/p>\n\n\n

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The latest data from Stats SA shows that inflation has risen to 5.0% ahead of the next interest rate decision. <\/p>\n","protected":false},"author":95,"featured_media":858392,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2079848683659575757","_sma_x_attempts":1,"footnotes":""},"categories":[11121],"tags":[4043,1809],"class_list":["post-867076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-south-african-reserve-bank","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=867076"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867076\/revisions"}],"predecessor-version":[{"id":867083,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867076\/revisions\/867083"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/858392"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=867076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=867076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=867076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}