High Inflation Rates in South Africa

Inflation in South Africa is sky rocketing high and when inflation goes high it basically means the cost of buying will also be high for consumers as prices of most products and services go up. In this article, we will outline how high inflation affects citizens(consumers).

The latest consumer price index published by Stats SA shows that annual consumer price inflation is at a 13-year high in South Africa, reaching a whopping 7.4% in June 2022. This is the highest percentage reading since 2009 (8%) when the economy was going through a currency crisis during the global financial crisis.

A list of some of the products and services that increased due to high inflation

  • Fuel- 45.3% increase
  • Oils and fats- 32.5% increase
  • Electricity- 14.5% increase
  • Public transport- 14.3% increase
  • Bread and cereals- 11.2% increase
  • Meat- 9.5% increase
  • Beer- 8% increase
  • Wine- 7.9% increase
  • Maize meal- 5.2% increase
  • Brown bread- 3.2% increase
  • Macaroni- 3% increase
  • Meat- 9.5% increase
  • Polony- 19% increase

Fuel prices represent the largest annual increase for fuel since the current CPI series started in 2009. Used vehicle prices moved from May 2020 - 2.9% to 11.1% in June 2022.

Prices of food and non-alcoholic beverages (NAB) increased by 8.6% in June. This is the highest annual rate for food and NAB since March 2017 when the country was recovering from a severe drought. The main groups contributing to high food inflation in June 2022 were bread and cereals, meat, and oils and fats.

Stats SA said “Many countries around the globe have experienced rising inflation in recent months, making it a hot topic for debate, particularly in the area of monetary policy