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%.
Stats SA said the CPI jumped by 1.5% between June 2022 and July 2022, for only the fourth time since 2008.
ALSO READ: Latest jobs report brings some good news, but unemployment still sky high
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.
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.
NOW READ: Fuel price drop: Do not expect grocery price relief yet!
