Statistics South Africa has released its annual consumer price inflation (CPI) report for May 2022 and with most publications made by the organisation in recent months, it makes for tough reading.

This as the consumer price inflation rate increased by 0.7 percent from April of this year to 6.5 percent for May. It is also the highest that the CPI rate has hit since January of 2017, which was 6.7 percent.

Unsurprisingly, Stats SA cites the recent rise in fuel as a key contributor to consumer price inflation.

“Fuel, in particular, continues to be a major contributor. If the impact of fuel is removed from the CPI reading in May, the headline rate falls to 5.1% from 6.5%,” it estimates.

“Diesel prices jumped by 8.1% between April and May, taking the annual rate to over 45%. The average price of a litre of diesel in May 2021 was R16.20 – meaning it cost R729 to fill a 45-litre tank. Twelve months later, with the average price at R23.67 per litre, filling the same tank cost R1 065,” it adds.

This had an impact on several areas, which in turn influenced the current CPI.

“Food and non-alcoholic beverages increased by 7,6% year-on-year, and contributed 1,3 percentage points to the total CPI annual rate of 6,5%. Housing and utilities increased by 4,9% year-on-year, and contributed 1,2 percentage points. Transport increased by 15,7% year-on-year, and contributed 2,1 percentage points. Miscellaneous goods and services increased by 3,9% year-on-year, and contributed 0,6 of a percentage point,” the report highlights.

Either way it is another gut punch for many in South Africa, who have had to contend with the rising cost of living in recent years coupled with record unemployment.

How citizens of the country will react to this latest bad news is unclear, but we will need to brace ourselves for even tougher months ahead.

You can download (PDF) and read the report in full here.

[Image – Photo by Sincerely Media on Unsplash]