Business

MBABANE - Eswatini’s annual inflation rate accelerated to 2.7 per cent in May 2026.

This marked the highest level recorded this year, signalling renewed price pressures in key sectors of the economy despite continued moderation in food prices.

According to the latest Consumer Price Index (CPI) report released by the Central Statistical Office (CSO) yesterday, the country’s headline inflation rate rose by 0.7 percentage points from 2.0 per cent recorded in April 2026.

However, it remained below the 3.2 per cent recorded during the corresponding period last year.

The latest figures indicate that while overall inflation remains relatively subdued compared to historical levels, rising housing-related costs, transport expenses and clothing prices are increasingly driving consumer spending pressures.

The report shows that the country’s CPI increased from 124.99 points in April to 125.94 points in May, translating into a monthly inflation rate of 0.8 per cent.

The largest contributor to the country’s inflation rate was the housing, water, electricity, gas and other fuels category, which recorded annual inflation of 6.6 per cent.

The category alone contributed approximately 1.9 percentage points to the overall inflation rate of 2.7 per cent, making it the single biggest driver of price increases across the economy.

Within the housing category, electricity prices rose by 15.1 per cent on an annual basis, while liquid fuels registered a staggering annual increase of 48.2 per cent. Actual housing rentals also increased by 3.3 per cent compared to the same period last year.

The CSO noted that housing inflation accelerated from 3.9 per cent in April to 6.6 per cent in May, highlighting the growing burden of utility and accommodation costs on households.

Given that housing and utilities account for nearly 28 per cent of the CPI basket, increases in this category have a significant impact on overall inflation trends.

The continued rise in utility-related expenses comes at a time when many households are already grappling with elevated living costs and slower income growth. Transport emerged as the second-largest contributor to inflation, adding about 0.7 percentage points to the headline figure.

Annual transport inflation stood at 4.0 per cent in May, slightly higher than the 2.5 per cent recorded in April.

The report attributes much of the increase to higher fuel costs and air travel charges.

The operation of personal transport equipment category recorded annual inflation of 14.4 per cent, largely driven by a 23.2 per cent increase in fuel and lubricant prices. Passenger air transport prices also rose sharply, increasing by 20.8 per cent year-on-year and 16.5 per cent on a monthly basis.

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Annual inflation rates series from May 2020 to May 2026.