BL Premium reports that Statistics SA advised on Wednesday that consumer price inflation reached a 13-year high in June. The consumer price index (CPI) accelerated to 7.4% from 6.5% in May, well above the upper band of the SA Reserve Bank’s inflation targeting range of 3%-6%.

This was the highest rate since May 2009 when inflation reached 8% and was also above economists’ expectations of 7.2%. Prices continued to accelerate mostly for transport, which increased 20% compared to 15.7% in May, due to rising fuel prices, which continued to soar as a result of external price factors. The food and nonalcoholic beverages category increased 8.6%, up from May's 7.6%. The oils and fats subcategory was a particular contributor, increasing 32.5%. Investec economist Lara Hodes said food price inflation was expected to remain elevated, with prices of grain-related products, and oils and fats mostly at risk. Farmers were also facing heightened key input costs including fertiliser and fuel, further weighing on prices and profits, Hodes noted. Absa economist Miyelani Maluleke pointed out that higher food prices could well motivate workers to seek bigger compensatory pay hikes.

• Read the full original of the report in the above regard by Thuletho Zwane at BusinessLive (subscriber access only)
• Read too, Inflation surges to 7.4% - highest in 13 years, at Fin24

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