South Africa’s annual consumer inflation rate climbed to 4.5% in May from 4.0% in April, reaching its highest level since July 2024 and placing renewed pressure on already strained household budgets. 

According to Statistics South Africa, the surge was driven largely by fuel costs, with the fuel index rising by 14.3% in May and recording an annual increase of 28.7%. Petrol prices were up 24.8% year-on-year, while diesel costs soared by 53.8%. 

#SAInflation || The inflation surge was largely driven by increases in fuel prices.

The fuel index recorded a second large monthly increase, leaping by 14,3% to reach an annual rise of 28,7%.

🔗: https://t.co/GyEK5G16hI#StatsSA #KnowYourStatsZA #GovZAUpdates #CPI https://t.co/sxVAwbz3Vc

— Statistician-General Risenga Maluleke (@SGMaluleke) June 17, 2026

The increase has sparked concern among the labour federation COSATU, which warned that workers are bearing the brunt of rising living costs.

“Workers cannot afford to see a rise in inflation, especially over such a short period of time, given that most workers are paid a pittance and not a living wage by their employers,” read the COSATU’s statement. 

COSATU added that the inflation spike is “bleeding workers who are already drowning in debt, borrowing at unsustainable levels, simply to buy food and electricity and service other debt”. 

While food inflation continued to ease, falling to 1.9% from 2.9% in April, consumers still faced higher prices in several categories, including dairy products, tea and household staples. Electricity and municipal charges also remained significant contributors to inflationary pressure. 

The South African Reserve Bank’s Monetary Policy Committee is scheduled to meet on 23 July, following a 25-basis-point increase in the repo rate to 7% last month. 

COSATU urged policymakers to avoid further rate hikes, arguing that the current inflation surge is fuel-driven and not caused by domestic demand. It also called for fuel levy relief and measures to shield workers and grant recipients from rising costs. 

“Similarly, Eskom must be assisted to reduce the increasingly unaffordable price of electricity… If inflation continues to increase, government must table a supplementary budget amendment bill to cushion Social and SRD Grant recipients from inflation.”

READ MORE: COSATU notes with deep concern the rise in CPI to 4.5%