Consumer price inflation drops to 5,4% in June

“The rate in June is the lowest reading in 20 months (since October 2021) when the rate was 5,0%,” said Statistics South Africa (StatSA).

The agency released the data on Wednesday morning.

It added that the last time inflation was under 6% was in April 2022.

Figures released by StatsSA show that this is now within the banks' target range of between 3% and 6%.

The agency further noted that the main contributors to the CPI decrease include food and non-alcoholic beverages and miscellaneous goods and services.

Chief director of price statistics Patrick Kelly explained: “Most food groups recorded lower inflation rates in June with the exception of vegetables, fruit and sugar, sweets and desserts…

“Prices for oils and fats decreased for the tenth successive month, with the index declining by 9,5% in the 12 months to June. The average price of a 750 ml bottle of sunflower oil was R35,57 in June 2023, lower than the R43,97 price tag in June 2022.

“The CPI in June incorporates the most recent quarterly survey of housing rents. Actual rents recorded an annual increase of 2,7%, slightly higher than March’s print of 2,5%.