Sharp increase in inflation points to cost of living crisis and ruling party policy failures

18 October 2023

ActionSA is deeply concerned that the sharp increase in monthly inflation from 4.8% in August to 5.4%, accompanied by increases in fuel prices and food prices, will put additional pressure on South African consumers when many are already battling a cost-of-living crisis.

The increase in inflation negatively affects all South Africans as it means household goods now cost, on average, more than they did previously, but will also likely lead to an interest rate hike which would increase the cost of credit, negatively effecting millions of over-indebted consumers.

This is at a time when the ruling party’s shambolic management of the economy has led to an energy and logistics crisis which not only saw the country lose out on the commodity boom but also led to a slowdown in job and income creation which further placed a strain on South Africans.

As a party which values economic justice, ActionSA believes the state should do more to protect consumers by increasing the number of VAT-free items such as menstrual products, but also liberalise the energy and logistics market, and support developing entrepreneurs.

South Africa’s energy supply, which is a direct contributor to inflation due to our dependence on oil imports, should also be secured by investing in alternative and renewable energy supplies.

ActionSA will continue to work to protect South Africans from the harmful policies of the ruling party and usher in a new government next year which will restore the country on a path towards prosperity.

Issued by Herman Mashaba, ActionSA President, 18 October 2023