Inflation hits 13-year-high in South Africa

STORY: South Africa's headline consumer inflation hit a 13-year-high in June, data from Statistics South Africa showed on Wednesday (July 20).

In annual terms inflation was 7.4%, more than forecast by analysts polled by Reuters who had predicted a rise to 7.2% from 6.5% in May.

The pickup in inflation in Africa's most advanced economy comes the day before the South African Reserve Bank is due to announce an interest rate decision.

Analysts expect a further 50 basis point rise in the repo rate - the rate at which commercial banks borrow from the central bank.

That would mark the fifth increase in a row.

June headline inflation was the highest since May 2009, during the global financial crisis.

Statistics SA figures showed food and fuel prices continue to be major drivers of price pressure.

They have soared globally due to the war in Ukraine.

Fuel prices were up 45.3% in June, the largest annual increase since the agency's consumer price index series began in 2009.

Prices of food and non-alcoholic beverages rose 8.6%, the highest annual rate since March 2017 when the country was recovering from severe drought.

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