INFLATION skyrocketed to a 13-year high in July, driven by high food, electricity and fuel prices.
On Wednesday, Statistics South Africa, in its latest consumer price index (CPI), said that inflation increased to 7.8% in July – once again outstripping the South Africa Reserve Bank’s inflation target range of between 4% to 6%.
The latest increase is in line with expectations from economists.
On a month-on-month basis, inflation rose with 1.5%.
South Africans are paying a lot more for food and non-alcoholic beverages as it jumped to a whopping 9.7%.
“Price increases for products such as bread & cereals, oils & fats, fuel and electricity made a notable impact on this month's reading,” Stats SA said.
"This is what we expected especially in the light of an underperforming economy," said economist Ulrich Joubert.
"The weak rand and the surge in basic goods are also not helping."
There is, however, light at the end of the tunnel as the price of fuel is expected to decrease next month.
Unaudited data from the central energy fund spells out a decrease of R2.60 a litre for 95 unleaded petrol.
This comes as 93 unleaded petrol is expected to cost consumers around R2.45 a litre less.
The final price changes will be announced soon.
The Automobile Association’s Lynton Beard said the projected decreased would be a relief for consumers.
“With these expected decreases, the price of 95 unleaded petrol will dip below R23 a litre and the price of 93 unleaded petrol will cost just more than R22.50 a litre,” he said.
The AA said that while these figures are promising, it must be remembered that this is only mid-month data and that the picture may change come month-end before the adjustments for September are made.
Last month the government started its process to deregulate the price of fuel by gazetting a notice inviting the public to comment on a proposed price ceiling on 93 octane petroleum.
“Government has maintained unnecessary control over the fuel price for too long, thereby hindering competition in the fuel sector which would result in lower prices at the pump for consumers, and more innovative selling methods by fuel retailers,” DA’s Kevin Mileham said at the time.
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