UASA Media Release: 26 February 2025
Statement by Abigail Moyo, spokesperson of the trade union UASA:
The annual consumer price inflation (CPI) was 3,2% in January 2025, up from 3,0% in December 2024. The CPI increased by 0,3% month-on-month in January 2025.
Following a week’s delay after it took longer than expected for Statistics South Africa (Stats SA) to do additional data checks after the inflation basket was updated, January’s CPI is the first calculated according to a new basket of goods.
Stats SA recently changed the basket of goods it uses to calculate the consumer inflation rate, which guides the Reserve Bank’s interest rate decisions. The new basket includes 71 additional items that South Africans spend more money on, while 53 products were removed.
The main contributors to the 3,2% annual inflation rate were housing and utilities, food and non-alcoholic beverages, restaurants and accommodation services. In January, the annual inflation rate for goods was 2,4%, up from 1,9% in December 2024, and services was 4,0%, down from 4,2% in December 2024.
While the CPI is still favourable for consumers, several economic challenges that may disrupt the current trend lie ahead. South Africans still await the National Budget Speech following its postponement over the possibilities of VAT increases. Fuel prices are expected to increase at the beginning of the month, and electricity tariff hikes will occur in April.
Difficult financial times may lie ahead for workers. UASA calls on the government to relook consumers’ overall cost of living and pricing of utilities, essential goods, and services to lessen the burden.
The current rate on CPI is welcome, but UASA continues to encourage its members and all workers to use this opportunity to tackle other financial and household needs and save for the future.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.