Consumer prices in South Africa poised to rise amid global pressures and Middle East conflict

CONSUMER prices in South Africa are expected to tick upwards on the back of global pressures and rising oil prices in the wake of escalating war in the Middle East.

- SIPHELELE DLUDLA

This is despite the consumer price inflation (CPI) remaining unchanged at 2.8%, matching April's five-year low.

Statistics South Africa (Stats SA) said on Wednesday that inflation was mainly driven by faster price increases for food and non-alcoholic beverages, housing and utilities, and clothing and footwear.

However, Patrick Kelly, chief director for price statistics at Stats SA, said these increases were offset by slower inflation in alcoholic beverages and tobacco, restaurants and accommodation services, and personal care and miscellaneous services while transport prices declined sharply.

“Food & non-alcoholic beverages is the only category that contributed to the monthly increase in the CPI. Meat, specifically beef, is a key factor behind the rise in food inflation,” Kelly said.