By Akani Nkuna
The sharp reduction in Consumer Price Index (CPI) from 4.4% to 3.8% has been welcomed by the Congress of SA Trade Unions, which says it will alleviate the financial burdens of many South Africans.
“This will provide invaluable comfort to millions of workers, help them to heal their financial wounds, take care of their families and pay their debts,” Cosatu parliamentary coordinator Matthew Parks said on Wednesday.
Stats SA published the CPI update earlier in the day, saying that there had been notable improvements in certain areas of the economy.
“This is the lowest inflation… since March 2021, when the rate was 3.2%. On average, prices increased by 0.1% between August 2024 and September 2024,” said Stats SA.
Transport inflation has decreased slightly with fuel prices dropping for a fourth successive month on an average of 9.0% lower than a year ago. Despite the decrease in fuel, food inflation remains unchanged.
Parks has urged the SA Reserve Bank to accelerate measures that will reduce the repo rate to provide additional support to workers struggling with debilitating debt and severely impacted by the escalating cost of living over the past 24 months.
“We trust that SARB will provide at least a 50-basis point cut in its next Monetary Policy Meeting due in a few weeks,” he said in a statement.
“It is equally important that government led by the ANC expedite interventions providing further support to Eskom to end its dependency on double digit tariff hikes and ensure Transnet and Metrorail are returned to full capacity to shield food and commuters from inflation.”
Furthermore, Cosatu has also called on the Treasury and the mineral resources and energy department to discuss strategies for lowering fuel prices and broadening the range of essential food items and goods exempted from VAT.
Parks said the aim should be to enhance the purchasing power of workers, improve nutrition and alleviate the economic burden of fuel costs. “If done, these can help reduce the suffocating burdens on working class families and spur badly needed economic growth,” he said.
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