SOUTH AFRICAN INFLATION RISES LESS THAN EXPECTED IN MAY

Wed 17 June 2026:

South Africa’s headline consumer ‌inflation quickened less than expected in May, rising to 4.5% year on year from 4.0% in April data from the statistics agency on Wednesday.

In month-on-month terms ⁠inflation was at 0.7% in May, compared with 1.1% in April.

Economists polled by Reuters had expected annual inflation would accelerate to 4.7%, as the impact of the U.S.-Israel war against Iran fed through into fuel and food prices.

__________________________________________________________________________

https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22

__________________________________________________________________________

As ‌a ⁠net fuel importer, South Africa is heavily exposed to the spike in global energy prices.

South Africa’s central bank targets inflation ⁠of 3%, with a 1 percentage point tolerance band either side.

At its last monetary policy ⁠meeting in May it raised its main lending rate for the first ⁠time in three years. Its next scheduled policy meeting is on July 23.