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This morning’s announcement by Stats SA that the annual consumer price inflation was 6,8% in April 2023, down from 7,1% in March 2023, shows that workers experienced a break from the high cost of living – probably a short-lived break as the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) is meeting tomorrow to decide on the repo rate.
During April, the consumer price index increased by 0,4% month-on-month. The current inflation rate is the lowest it has been in 11 months.
The main contributors to the inflation rate were food and non-alcoholic beverages, housing and utilities, transport, and miscellaneous goods and services. Food and non-alcoholic beverages increased by 13,9% year-on-year and contributed 2,4 percentage points, down from 14% last month.
UASA can only hope the MPC will be considerate to workers and consumers and keep the repo rate as it is. The projected GDP growth for this year will be flat given the very high levels of load shedding, relative high Repo Rate, and increasing levels of unemployment.
The inflation rate directly affects affordability and the cost of living. UASA encourages its members and fellow South Africans to observe their budgets and align their survival methods with disposable incomes. As challenging as it may be, a prudent approach to spending is essential.
Issued by UASA Spokesperson Abigail Moyo