South Africa’s annual inflation rate jumped to its highest level in almost two years in May, driven by surging energy prices fanned by the US-Israeli war with Iran.

Consumer prices rose 4.5% compared with 4% in April, Pretoria-based Statistics South Africa said in a statement on its website Wednesday.

In month-on-month terms, inflation was 0.7% in May, down from 1.1% in April. South Africa’s central bank targets inflation of 3%, with a 1-percentage-point tolerance band on either side.

At its last monetary policy meeting in May, the South African Reserve Bank (SARB) raised its main lending rate for the first time in three years. Its next scheduled policy meeting is on July 23.

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