Key facts
- South Africa's headline consumer inflation increased to 5.0% year-on-year in June.
- This figure surpassed the 4.7% anticipated by economists.
- The rise was primarily attributed to escalating global energy costs.
- Monthly inflation remained steady at 0.7% in June.
- The South African Reserve Bank's target inflation rate is 3%.
South Africa's headline consumer inflation accelerated to 5.0% year-on-year in June, surpassing economists' expectations of 4.7%. The previous month's inflation rate was 4.5%. On a monthly basis, inflation stood at 0.7% in June, the same rate as in May. Economists polled by Reuters had anticipated annual inflation would increase to 4.7%, with price pressures stemming from the surge in global energy costs since late February. The South African Reserve Bank's target for inflation is 3%. Traders have hardened bets that Governor Lesetja Kganyago’s monetary policy committee will lift interest rates by 25 basis points to 7.25% on Thursday, matching the forecast of 17 of 20 economists in a Bloomberg survey.