Inflation surges to 13-year high

Annual inflation in June in South Africa was 7.4%, according to the latest figures released by Stats SA.

This is the highest number recorded since May 2008, when inflation was 8%. This was primarily as a result of the global financial crisis and the weakening of the rand.

According to Stats SA, month-on-month inflation was 1.1% between May and June.

Transport, goods, and services showed the biggest rise among the various components which make up the inflation basket. An annual increase of 20% was recorded, with fuel alone increasing by 45% in June. This is the biggest annual increase for fuel since the current inflation methodology was first used in 2009.

The price of food and non-alcoholic beverages also showed sharp increases, going up by nearly 9% in the year to June.

Bread and cereal products increased by 11%, while meat saw an annual rise of 9.5% in June.

Many countries around the world are also battling with rising inflation. Latest numbers from the United Kingdom showed that inflation was almost 10% in that country.

The South African Reserve Bank meets today, and observers believe another interest rate hike is likely.

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