UASA Media Release: 20 August 2025
Statement by Abigail Moyo, spokesperson of the trade union UASA:
The reported Consumer Price Inflation (CPI) increase of 3.5% in July, up from 3% in June, is not good news for consumers as it reveals concerning factors regarding the cost-of-living outlook.
Earlier in the year, the CPI had been performing well, remaining below the 3% lower limit of the South African Reserve Bank’s (SARB) target band. This was encouraging for consumers who hoped the cost of living would become more manageable.
The main contributors to the higher inflation rate include food and non-alcoholic beverages, which increased to 5.7% year-on-year in July, along with housing and utilities. Additionally, basic goods and services contributing to the CPI, such as electricity and water tariffs, surged well above the SARB’s target band, as did fuel prices. The rising inflation rate has a significant impact on consumer purchasing power.
While economic observers anticipate some relief later this year, it is unfortunate that South Africans continue to feel the financial strain as the prices of everyday food items, essential goods, and services continue to rise.
UASA is particularly concerned about the hikes in municipal, electricity, and water tariffs. The recent increases imposed on these services have had a substantial impact on consumers who rely on them daily.
We urge the government and relevant stakeholders to consider the cost-of-living crisis when imposing tariff hikes carefully. Hurting consumers financially will not resolve the revenue losses nor rectify the financial challenges faced by State-Owned Enterprises (SOEs). Consumers should not be used as a solution to address the government’s shortcomings.
Despite this troubling inflation situation, we hope that the SARB will show leniency towards consumers and consider cutting interest rates in the future.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.