By Anita Dangazele
- Statistics South Africa says prices rose 5% in the year to June 2026, a bigger jump than anyone had expected.
- Economists blame rising fuel prices from the war in Iran, with the Reserve Bank’s rate decision due on 23 July.
South Africans are paying more to survive. Statistics South Africa said that the cost of living rose faster than expected in June.
Prices were up 5% for the year. This is higher than the 4.7% rise economists expected, and up from 4.5% in May.
A person on a tight budget now buys less food, transport and electricity with the same money than they did a year ago.
Prices rose 0.7% in June. This is the highest reading this year. It climbed from 3.5% in January to 5% in June.
Transport is the main reason prices rose. Stats SA said transport added 1.7 percentage points to the total number.
Patrick Kelly from Stats SA said fuel pushed transport costs up. He said fuel prices climbed by 34.3% in the past 12 months.
“Higher fuel prices have had a knock-on effect on passenger transport inflation, which registered a monthly rise of 8.1% in June,” Kelly said.
South Africa buys most of its fuel from other countries. Global oil prices climbed since the United States and Israel went to war with Iran in February.
Taxi fares are also climbing. The Pietermaritzburg Economic Justice and Dignity Group found fares rose between R2 and R5 in June.
In Pietermaritzburg, the fare jumped from R20 to R24.
A worker earning the minimum wage takes home R5,078.64 a month. The group found that transport and electricity cost R3,197.85. This is 63% of their pay.
The worker has R1,880.79 left. This is less than half of what a family of four needs to eat a basic diet.
The South African Reserve Bank wants to keep price increases at 3%. It makes its next interest rate decision on 23 July.
Higher inflation makes a rate cut less likely. Economists had been hoping for one this year.
Higher inflation makes a rate cut less likely, and economists had been hoping for one this year.
Pictured above: A person doing grocery shopping.
Image source: Pexels
