JOHANNESBURG, May 20 – South Africa’s annual inflation rate accelerated to a 20-month high in April as rising fuel costs linked to the conflict in the Middle East pushed consumer prices higher.
Consumer prices rose 4% year-on-year in April, up from 3.1% in March, according to data released on Wednesday by Statistics South Africa.
The latest reading marks the first major inflation shock tied directly to the sharp increase in fuel prices since South Africa adopted its inflation-targeting framework in 2000.
Global oil prices have surged since the United States and Israel attacked Iran in late February, disrupting shipping flows through the Strait of Hormuz, a critical route for global oil and liquefied natural gas supplies.
Brent crude prices have climbed roughly 50% since the conflict began, sharply increasing fuel import costs for countries such as South Africa that rely heavily on imported energy.
Economists expect the impact of higher fuel costs to continue feeding into inflation data in coming months, including May.
Lesetja Kganyago, governor of the South African Reserve Bank, said earlier this month that policymakers remain committed to returning inflation to the bank’s 3% target despite the external shock.
While central banks have limited ability to control supply-driven inflation caused by geopolitical disruptions, the SARB has emphasized preserving inflation credibility and anchoring long-term expectations.
Countries globally are grappling with inflationary pressures triggered by the conflict, with some governments introducing measures including fuel subsidies, tax reductions, price controls and fuel rationing to cushion consumers.
South Africa’s inflation acceleration adds to growing pressure on households already facing elevated transport and energy costs, while investors closely monitor whether the central bank may need to tighten monetary policy further to contain inflation risks.
