Inflation jumps to 2.7% as housing, transport costs bite

MBABANE – Eswatini’s inflation rate rose sharply to 2.7 per cent in May 2026.

This was largely driven by higher housing, electricity and transport costs, according to the latest Consumer Price Index (CPI) report released by the Central Statistical Office (CSO).

The increase marks a significant jump from the 2.0 per cent recorded in April and represents the highest inflation rate recorded so far this year.

While the latest figure remains below the 3.2 per cent recorded in May last year, it signals growing cost-of-living pressures for consumers following several months of relatively subdued inflation.

The CSO report shows that rising housing and utility costs were the biggest contributors to the increase.

The housing, water, electricity, gas and other fuels category recorded annual inflation of 6.6 per cent and accounted for nearly two-thirds of the overall inflation rate.

Electricity prices increased by 15.1 per cent compared to the same period last year, while liquid fuel prices surged by a staggering 48.2 per cent.

Rental costs also continued to rise, increasing by 3.3 per cent year-on-year.

Transport costs provided another major source of inflationary pressure.

The transport category recorded annual inflation of 4.0 per cent, supported by rising fuel prices and higher air travel costs.

Fuel and lubricants for personal vehicles rose by 23.2 per cent over the year, while passenger air transport costs increased by 20.8 per cent.

The latest figures suggest that households are increasingly feeling the impact of rising energy-related expenses despite some relief in food prices.

In contrast, food and non-alcoholic beverages recorded annual deflation of 1.8 per cent, meaning prices in the category were generally lower than they were a year ago.

The decline was largely driven by falling prices for bread and cereals, which dropped by 5.4 per cent, as well as lower prices for oils and fats.

The continued moderation in food prices helped cushion consumers from larger increases in housing and transport expenses.

Meanwhile, clothing and footwear inflation remained elevated at 5.8 per cent, making it the third-largest contributor to overall inflation.

Health inflation slowed dramatically to just 0.2 per cent, down from 4.6 per cent recorded a year earlier, while communication costs remained unchanged.

The report also revealed that inflation for goods stood at 3.2 per cent compared to 1.9 per cent for services, indicating that consumers are experiencing stronger price increases when purchasing physical products than when paying for services.

A notable development during the month was the sharp increase in accommodation costs. Inflation in the restaurants and hotels category jumped to 5.9 per cent on a monthly basis, largely due to higher accommodation service charges.