BY PHUMELELE GAMEDZE
MBABANE – The Kingdom of Eswatini recorded a slight decline in inflation during June 2026, with the annual Consumer Price Index (CPI) falling to 2.6 percent, signalling continued price stability while highlighting the sectors that continue to influence household spending across the country.
The latest CPI Report, released by the Central Statistical Office (CSO) under the Ministry of Economic Planning and Development, shows that headline inflation decreased by 0.1 percentage points from 2.7 percent in May 2026 and by 0.3 percentage points from 2.9 percent recorded in June 2025.
According to the report, the annual inflation rate for goods stood at 3.1 percent, while services recorded 1.8 percent, indicating that the prices of physical goods continued to rise faster than service related costs.
Despite the overall moderation in inflation, some sectors experienced stronger price increases. Transport recorded an annual inflation rate of 4.2 percent, while Restaurants and Hotels increased to 2.8 percent. Meanwhile, inflation for Alcoholic Beverages, Tobacco and Narcotics slowed to 3.2 percent, reflecting easing price pressures in that category.
On a monthly basis, inflation increased by only 0.1 percent between May and June 2026. The report attributes this modest rise to price movements across several expenditure divisions, although decreases were observed in Restaurants and Hotels, Transport, and Housing, Water, Electricity, Gas and Other Fuels.
The CSO further noted that the largest contributors to the country’s 2.6 percent headline inflation were Housing, Water, Electricity, Gas and Other Fuels, which contributed 1.7 percentage points, followed by Transport with 0.7 percentage points, and Clothing and Footwear, which contributed 0.3 percentage points.
The Consumer Price Index is one of the country’s most important economic indicators as it measures changes in the prices paid by consumers for goods and services over time. The information is widely used by Government, policymakers, businesses and financial institutions when making decisions on monetary and fiscal policy, wage negotiations, contract adjustments and national economic planning.
The continued moderation in inflation suggests that price increases are becoming more stable compared to the previous year, providing useful insights into the country’s cost-of-living trends and the overall performance of the economy. However, the report also indicates that transport and housing related expenses remain among the key drivers of consumer prices.
The full June 2026 Consumer Price Index Report is available on the Ministry of Economic Planning and Development’s website.
(Courtesy Pic)
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