Cosatu urges SARB to cut repo rate amid cooling inflation
The Congress of South African Trade Unions has welcomed the drop in consumer inflation to 3.8%, saying it offers relief to struggling workers.
September's reading is the lowest since March 2021 and is down from the 4.4% recorded in August.
Several product groups, such as housing and utilities, miscellaneous goods and services, food and non-alcoholic beverages and alcoholic beverages and tobacco, were positive contributors.
Cosatu’s Matthew Parks said the South African Reserve Bank must reduce the repo rate by at least 50 basis points in November to ease debt burdens.
He also called for government intervention to stabilise Eskom and reduce fuel prices.
“It is equally important that the government, led by the African National Congress, expedite interventions to provide further support to Eskom to end its dependency on double-digit tariff hikes and ensure Transnet and Metro Rail are returned to full capacity to shield food and commuters from inflation.
“Treasury and the Department of Mineral and Petroleum Resources need to return to Nedlac to engage on modalities to reduce the fuel price regime and expand the basket of essential food and other goods from VAT to boost the ability of working-class families to buy key food items, boost nutrition and ease the cost of fuel for the economy at large.
“If done, these can help reduce the suffocating burdens on working-class families and spur badly needed economic growth.”
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