The first slight decrease in headline consumer price inflation this year, dropping to 5.3% in March from 5.6% in February, brought some relief to workers and consumers regarding the affordability of basic needs and services. The consumer price index increased by 0,8% month-on-month in March 2024.

Stats SA reported today that in March 2024, the annual inflation rate for goods was 5,7%, down from 6,2% in February 2024. It was 5,0% for services, up from 4,9% in February 2024.

The inflation figure remains above the 4.5% midpoint of the South African Reserve Bank’s (SARB) target. This is a further disadvantage for consumers as the central bank has been clear that it won’t cut interest rates until inflation is consistently closer to the middle of its 3% - 6% range.

Keeping up with trends, UASA reminds industry players that consumer spending is vital in economic structure. It calls on business owners to consider the financial pressure workers and consumers face when pricing their goods and services.

UASA encourages its members and other workers to remember the economic hardships we all face and always remember to save something for tomorrow whenever the interest rate favours their pockets.

 

Issued by UASA spokesperson Abigail Moyo