UASA Media Release: 21 August 2024
Statement by Abigail Moyo, spokesperson of the trade union UASA:
With the inflation rate the lowest in three years, a potential rate cut by the SA Reserve Bank (SARB) may wink around the corner.
UASA is pleased that the consumer price index (CPI) has dropped to its lowest level since July 2021, placing the rate closer to the SA Reserve Bank’s target level of 4.5%.
Stats SA reported today the annual consumer price inflation was 4,6% in July 2024, down from 5,1% in the previous month. Food and non-alcoholic beverages slowed further to 4.5% in July from 4.6% in June.
Lower fuel prices in July helped trim transport inflation, which paves the way for an interest rate cut in September. With such hope for further reduced pressure on food and essential services, UASA believes consumers may soon enjoy more disposable income with an increased affordability standard.
Although the CPI has dipped to a low, several rates – including electricity, municipality and water – have been hiked in the past month, keeping the cost of living high.
As we always remind government, stakeholders, and policymakers to consider the needs of fellow citizens when pricing and implementing tariffs on several services, we believe such alignments and reliefs are crucial to alleviating the painful reality for many poverty-stricken citizens.
UASA hopes that the current cool-down trend in the CPI and fuel prices continues to help consumers with financial relief during the remainder of the year and into the festive season.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.