UASA Media Release: 17 June 2026
Image Source: www.statssa.gov.za
Statement by Abigail Moyo, spokesperson of the trade union UASA:
The annual Consumer Price Index (CPI) rose to 4.5% in May, up from 4.0% in April. Although this represents an increase in inflation, the outcome is slightly more positive than anticipated, as most economists had expected the figure to reach approximately 4.7%.
On a month-on-month basis, CPI increased by 0.7% in May.
Inflationary pressures were evident across most sectors of the economy, largely driven by rising fuel prices and higher utility costs.
The most significant contributors to the increase in annual inflation were housing and utilities as well as transport. These cost pressures continue to strain household budgets and contribute to the broader rise in the cost of living.
The latest figures place inflation above the South African Reserve Bank’s (SARB) tolerance level of 4% and 1.5 percentage points above the official 3% target. This indicates that inflation remains elevated and could influence future interest rate decisions if the trend persists.
Sustained high inflation may prompt the SARB to adopt tighter monetary policies in an effort to stabilise prices.
Despite these challenges, there is cautious optimism among consumers. Hopes are pinned on a potential agreement between the United States and Iran, which could ease geopolitical tensions that have contributed to volatile fuel prices and the current inflation outlook.
If such external pressures subside, there may be room for inflation to moderate in the coming months.
In the broader economic context, the stronger-than-expected Gross Domestic Product (GDP) growth recorded in the first quarter has provided some encouragement.
UASA remains optimistic that the inflation outlook will improve, supported by both domestic economic performance and the possibility of stabilising global conditions.
In the meantime, UASA urges consumers and workers to remain vigilant in managing their finances amid the continued pressure of high inflation. While the cost of living remains a concern, there is hope that improvements in geopolitical conditions and economic stability will help ease inflationary pressures in the months ahead.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.