UASA Media Release: 19 August 2026
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA welcomes the moderation in headline Consumer Price Inflation (CPI), which declined to 4.3% in July 2026 after reaching a two-year high of 5% in June. This marks the first decrease in inflation in five months and offers much-needed relief to consumers and workers who have endured significant financial pressures in recent months.
While inflation remains above the South African Reserve Bank’s (SARB) 3% target and slightly above the upper end of its preferred range, the easing trend is a positive development for households and the broader economy. CPI increased by only 0.2% month-on-month in July 2026, indicating a moderation in price pressures.
Fuel prices contributed significantly to the decline in inflation. Between June and July, petrol prices fell by 7.1%, while diesel prices decreased by 11.7%. Despite these encouraging monthly declines, fuel costs remain substantially higher than a year ago, with petrol prices up 19.3% and diesel prices up 28.8% on an annual basis.
As the country continues to recover from elevated fuel costs and the impact of Foot-and-Mouth Disease, beef prices also declined during the period under review. The resulting moderation in food price inflation has provided some relief, particularly for lower-income households. In addition, municipal rates and taxes recorded a slower rate of increase in 2026 compared to 2025, further supporting the easing inflation trend.
UASA is encouraged by these developments and views the decline in inflation as a positive signal for consumers, workers and the economy. However, the cost of living remains a significant challenge for many South Africans, and households continue to feel the effects of sustained price increases across essential goods and services.
As UASA continues to advocate for fair wages in the sugar sector and across the broader economy, the union calls on employers to remain mindful of the financial pressures facing workers and their families. Many employees are the primary breadwinners in their households and carry the responsibility of meeting essential living expenses while supporting their dependants.
Employers should therefore take a balanced and responsible approach to wage negotiations by recognising the ongoing cost-of-living challenges experienced by workers. Fair and sustainable wage increases are essential to protecting workers’ purchasing power and ensuring that the benefits of economic activity are shared more equitably.
Workers make a vital contribution to South Africa’s economy through their skills, dedication and hard work. UASA remains committed to securing wage increases that not only keep pace with inflation but also improve workers’ standard of living and economic security.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.