UASA Media Release: 18 June 2025
Statement by Abigail Moyo, spokesperson of the trade union UASA
UASA welcomes the Consumer Price Inflation (CPI) rate for May, reported at 2.8%, unchanged from the April rate. This figure aligns with economists’ expectations.
This marks the third consecutive month that the CPI has remained below 3%, falling within the South African Reserve Bank’s target range. The CPI increased by 0.2% month-on-month in May 2025.
While it is encouraging that the inflation rate remains favourable and within the SARB’s target range, it is concerning that food prices are rising. In May, food and non-alcoholic beverages were 4.8% more expensive compared to the same period the previous year, with beef contributing significantly to this increase.
Additionally, lower fuel prices have contributed to the low inflation rate; however, ongoing tensions due to Israel’s attacks on Iran could disrupt oil supplies from the Middle East, potentially leading to a slight increase in fuel prices.
We anticipate that the recorded inflation rates have positively impacted economic growth, providing companies with the opportunity to expand, create jobs, and absorb some of South Africa’s unemployed population.
If the trend in inflation rates continues to be favourable, the upcoming Quarterly Employment Statistics will provide positive news regarding economic prospects and the cost of living for consumers.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.