Inflation much higher for poor South Africans
Statistics South Africa today released the latest Consumer Price Inflation (CPI) statistics, indicating that inflation has increased slightly to 6.1% in the last month.
But beneath the headline statistics, troubling facts about inflation for poor South Africans can be found. Poor South Africans experience much higher inflation than the reported CPI rate. Those South Africans who spend less than R14 564 per year, for example, face inflation at 7.7%, whilst the richest South Africans only experience inflation of 5.6%.
Here is the full breakdown:
Annual Expenditure |
Inflation Rate --> |
Below R14 564 |
7.7% |
R14 565 - R23 278 |
7.5% --> |
R23 279 - R36 755 |
7.3% |
R36 756 - R79 152 |
6.9% --> |
R79 153 and more |
5.6% |
These statistics clearly show that the poorer you are the higher inflation is on the goods and services you generally purchase.
This only exacerbates inequality and entrenches poverty.