CPI rises to 30-month high in May

File: Inflation

File: Inflation. Pixabay/geralt

Pixabay/geralt

JOHANNESBURG - Consumer inflation has risen to a 30-month high, increasing to 5.2 percentage points in May.

That's its highest pace since February 2020.

READ: South Africa's consumer inflation increases

The acceleration in price growth is partly due to a base effect.

The data -- released by Stats SA on Wednesday morning -- beat analysts' expectations who believed inflation would accelerate to 5-point-1 percent in May.

READ: Producer Price Inflation increases 5.2%

The figures reflect rising food and fuel prices, as well as supply-chain disruption.

The main contributors to the May rate were food and non-alcoholic beverages, housing and utilities, transport, and miscellaneous goods and services.

There are now fears the latest data could prompt the Reserve Bank to hike interest rates sooner rather than later. 

Source
eNCA

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