South Africa's consumer inflation dipped slightly in June, offering a glimmer of hope after months of rising prices, statistics agency data showed on Wednesday. The annual change in the consumer price index (CPI) rate fell to 5.1 per cent in June, down from 5.2 per cent in May. This keeps inflation within the South African Reserve Bank's target range of 3 per cent to 6 per cent, where it has stayed for the past 10 months. Food and non-alcoholic beverage (NAB) inflation reached a 45-month low of 4.6 per cent in June, significantly lower than its March 2023 peak of 14 per cent. This is positive news for household budgets. Several food categories saw price decreases, including vegetables, fruits, and dairy. However, not all food categories witnessed this decline. Hot beverages like coffee and tea experienced a significant price increase, with the annual inflation rate for this category reaching 16.5 per cent. Similarly, bread and cereals saw their first inflation rise in 14 months, driven by rising maize prices. Meanwhile, inflation in housing and utilities remained moderate at 5.5 per cent, while transport inflation cooled to 5.5 per cent. Fuel prices also showed a welcome decrease, dropping the annual fuel inflation rate to 7.6 per cent. The slowdown in inflation offers some relief for South Africans facing rising costs. However, certain categories continue to see price hikes, particularly hot beverages and some staple foods. The central bank will likely monitor this data closely as it decides on future interest rate adjustments. Attribution: Statistics South Africa Department data
