Money and Markets

Inflation is rocketing – especially if you eat bread or drive a car

Business Insider SA
(Getty)
(Getty)

  • The rate of consumer inflation hit 7.4% in June, StatsSA said on Wednesday, the highest in 13 years.
  • It was a lot higher for those who like bread, use a lot of electricity, or drive their own cars long distances.
  • The average price of food was up 9.2%, and private transport costs were up nearly 37%, year on year.
  • Here is where inflation hit the hardest in June.
  • For more stories go to www.BusinessInsider.co.za.

The average rate of consumer price inflation (CPI) for South Africans hit 7.4%, StatsSA said on Wednesday, the highest seen in 13 years.

But that was nothing compared to the increases in some prices, making for a much harder hit depending on your fondness for electricity, driving your own car, or bread.

On average, South Africans have not seen prices increase this fast since May 2009, when the CPI rate hit 8%, StatsSA said.

CPI limited to prices set by the government was up 17.8% year-on-year, the organisation's detailed breakdown showed.

The national CPI food basket was 9.2% more expensive than a year ago – but increases were much higher if you ate a lot of bread, or did a lot of deep-frying.

Oils and fats prices shot up by 6.2% just compared to May, making for an annual price increase of 34.3%.

Bread and cereals prices rose by not much under 3% in the month, making for an 11.4% year-on-year increase.

For rural areas, those price increases were slightly worse, hitting 39.7% and 11.7% respectively.

Transport price increases were also crippling. As calculated by StatsSA, the average cost of transport in South Africa is now up 19.2% compared to June 2021. But for those using private transport, the average costs have shot up by 36.8%, thanks to huge fuel price increases. 

Public transport prices have not tracked those fuel-price increases yet, increasing by a relatively modest 12.4% year-on-year.

Electricity was another big contributor to the high overall inflation number. Average household utility bills are up only 5.4% year-on-year for June, said StatsSA, but the portion of those bills that pay for electricity and other fuels used around the home was up 14.2% compared to June 2021.

Very few goods and services escaped inflation rates higher than South Africans have grown used to; fruit prices were flat, clothing and shoe prices are up only 2% compared to last year, and the average cost of communications is down compared to 2021.

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