The Consumer Price Index (CPI) in South Africa recorded a moderate increase of 0.2% in May compared to April, according to data published by Statistics South Africa on Wednesday, June 18. The overall inflation remained stable at 2.8% on an annual basis, unchanged from the previous month, as expected by analysts.
Meat, main driver of food inflation
The monthly increase in the CPI is mainly attributable to the category “Food and non-alcoholic beverages”, the only one contributing to this increase. Indeed, prices in this category rose by 1.1% in May, after a 1.3% increase in April. On an annual basis, food inflation reached 4.8%, compared to 4.0% the previous month, its highest level since March 2024.
Among the sub-categories, meat, especially beef, is the main factor of this inflation. The annual rate of increase in meat prices rose from 3.0% in April to 4.4% in May. This evolution is mainly linked to a foot-and-mouth disease epidemic and the increase in the cost of livestock feed. Last month, beef products showed significant increases: beef steak: +4.5%, stewing beef: +2.5%, minced beef: +1.7%.
Other notable increases in food
Other food products also recorded increases: fish and seafood: annual increase of 4.9%, especially hake (+9.1%) and fish sticks (+6.1%), oils and fats: +5.6% on an annual basis, with peaks on sunflower oil (+7.6%) and block margarine (+7.9%), vegetables 10.3%, compared to -2.6% in November 2024. Some significant increases include beetroot (+64.0%), lettuce (+20.9%) and carrots (+13.4%), cereal products +4.5% on an annual basis, dominated by maize flour (+14.2%) and samp (+20.6%).
While most wheat-based products show moderate increases, biscuits stand out: savory biscuits: +2.2% monthly / +12.5% annual, sweet biscuits: +1.5% monthly / +6.4% annual.
Regarding hot drinks, the index remained unchanged between April and May, while the annual increase slowed down to 12.4%, compared to 15.2% in April. This is the lowest annual progression since April 2024.
Other price developments
Furthermore, other expenditure items experienced notable adjustments: electrician services: +7.9% in May, on a monthly and annual basis (rates are raised twice a year), fuels: monthly decrease of 1.1%, bringing the annual decline to -14.9%. Gasoline is now 15.9% cheaper and diesel 12.6% cheaper than a year ago, marking the largest decrease since October 2024.
