SA Headline Inflation Rises to 5%, Food Prices Hit Record Low

South Africa's headline consumer price index rose to 5.0% year-on-year in June, up from May's rate of 4.5%, according to Statistics South Africa.

The acceleration was driven by increases in transport costs (+12.7% year-on-year), housing and utilities (+5.5% year-on-year), and financial and insurance services (+5.9% year-on-year).

In contrast, food inflation slowed down significantly to a 15.5-year low of 1.4% year-on-year in June.

The bumper summer crop harvest contributed to the decline in grain prices, with cereal products remaining deflationary at -1.5% year-on-year in June.