South Africa’s inflation picture changes as fuel costs hit households harder

South Africans are once again feeling the pressure at the tills and at the fuel pumps after annual consumer inflation climbed to 5% in June 2026, marking the highest reading in two years.

New figures released by Statistics South Africa (Stats SA) show that inflation accelerated from 4.5% in May, driven largely by sharp increases in fuel and transport costs. While some food staples became cheaper, rising travel expenses placed fresh strain on household budgets.

For many families, the impact is already familiar. Whether it is the daily taxi ride to work, a school transport bill or the cost of filling a car, transport has become one of the biggest monthly expenses and June’s inflation figures confirm that trend.

Fuel prices emerge as the biggest inflation driver

Stats SA said transport made the largest contribution to both annual and monthly inflation increases.

Fuel prices surged by 34.3% over the past year, with diesel costs jumping by 50.8% and petrol prices increasing by 31.7%. As a result, transport inflation accelerated sharply to 12.7% in June, up from 9.4% in May.

The knock-on effect has been felt across public transport services:

• Minibus taxi fares increased by 11.5%
• E-hailing services rose by 8.7%
• Long-distance bus fares climbed by 8.4%
• School transport costs increased by 3.7%

Passenger transport inflation rose by 8.1% in June alone, highlighting how fuel costs quickly ripple through the broader economy.

For many South Africans, especially in cities like Cape Town, Johannesburg and Durban where commuting is a daily necessity, transport costs often determine how much money remains for groceries and other essentials.

A silver lining: Some food prices are easing

While transport became more expensive, consumers received some relief in the grocery aisle.

Food and non-alcoholic beverage inflation slowed to 1.6% in June, down from 1.9% in May and 2.9% in April.

Several staple foods cost less than they did a year ago:

• White rice dropped by 13.4%
• Maize meal fell by 5.9%
• Samp declined by 1.5%
• Porridge prices eased by 1.3%

Cereal products recorded a fifth consecutive month of lower prices, offering some support to households facing rising transport expenses.

Meat prices also showed signs of stabilising. Beef mince inflation slowed significantly, while stewing beef moved into deflation, meaning it became cheaper than a year ago.

However, not all meat products followed the same trend.

Pork remained expensive, with inflation at 13.9%, while lamb and mutton increased by 8.4%. Processed meats also recorded notable price hikes:

• Sausages: 11.8%
• Corned meat: 10.2%
• Bacon: 8.6%

Tea, coffee and daily comforts continue to cost more

South Africans’ favourite hot drinks also remained under pressure.

Hot beverage inflation reached 7.4% in June, continuing a trend that has persisted for several years. Black tea prices rose by 8.3%, while instant coffee increased by 7%.

These increases may seem modest individually, but they add up over time, especially for households already balancing higher transport and housing costs.

Rent prices continue their gradual climb

Housing costs also edged upward.

Actual rental prices increased by 1.1% from the March quarter, with annual rent inflation reaching 4.1%.

Over the past year:

• Townhouse rents increased by 5.4%
• Flat rentals rose by 4.6%
• House rentals climbed by 3.7%

Although rent increases remain below transport inflation, housing continues to be one of the largest expenses for South African households.