South Africa's annual consumer price inflation accelerated to 5% in June, up from 4.5% in May, with higher fuel prices emerging as the biggest driver of the increase.
The latest figures released by Statistics South Africa (Stats SA) show that transport made the largest contribution to both annual and monthly inflation after fuel costs surged amid rising global oil prices.
In June, the price of petrol increased by R1.43 per litre, while diesel prices climbed by between R2.62 and R3.25 per litre, depending on the grade.
Other significant contributors to annual inflation included housing and utilities, as well as insurance and financial services.
On a monthly basis, consumer prices rose by 0.7% between May and June.
Stats SA Chief Director for Price Statistics Patrick Kelly said transport inflation accelerated sharply during the month.
"Transport was the largest contributor to both annual and monthly changes in the CPI. This was mainly underpinned by higher fuel prices. Its annual rate accelerated to 12.7% in June from 9.4% in May. Fuel prices climbed by 34.3% over the past 12 months, driven by increases of 50.8% in diesel and 31.7% in petrol," Kelly said.
He added that rising fuel costs had also pushed up passenger transport prices, which recorded a monthly increase of 8.1% in June.
Despite the overall rise in inflation, food price inflation continued to ease. Stats SA data shows food inflation slowed to 1.4% in June from 1.9% in May.
Kelly said cereal products recorded a fifth consecutive month of deflation, with prices falling by 15% compared with a year earlier.
He noted that several staple foods became more affordable over the past year, including white rice, which was down 13.4%, maize meal, which fell by 5.9%, and porridge, which declined by 1.3%.
Kelly also said meat inflation continued its downward trend during the month.
The increase in headline inflation has strengthened expectations that the South African Reserve Bank could consider another interest rate hike, with the 5% inflation rate remaining well above the bank's preferred target of 3%.