South Africa's annual consumer inflation surged to 5% in June, marking the highest level since June 2024.This increase is primarily attributed to a sharp rise in fuel prices, which have climbed 34.3% over the past year.Transport costs saw significant hikes, with passenger transport inflation surging by 8.1%, and minibus taxi fares rising 11.5%.Housing and utilities also contributed to inflation, with rental prices increasing by 4.1%.Core inflation, excluding food, fuel, and energy, reached 4.1%, the highest since September 2024.While food price inflation remained subdued, items like pork and processed meats saw notable increases.

The Reserve Bank may need to adjust monetary policy rates to combat rising inflation, which is driven by global oil prices linked to geopolitical tensions.