By Phenyo Selinda
The African National Congress (ANC) and the Economic Freedom Fighters (EFF) have both acknowledged the recent decline in South Africa’s annual consumer price inflation, which dropped to a three-year low of 4.6% in July 2024. This marks a significant decrease from June’s 5.1%, offering a temporary reprieve to households struggling with high living costs.
In a statement, the ANC welcomed the drop, noting that this lower inflation environment could provide flexibility for interest rate reductions, thereby easing credit costs for households and boosting disposable income. ANC Acting National Spokesperson Zuko Godlimpi emphasized that the continuing fall in consumer prices reflects the success of the party’s economic stabilization efforts, aligning with their 2024 manifesto’s priority to reduce the high cost of living. Godlimpi also mentioned that the ANC-led Government of National Unity (GNU) will continue to implement policy actions to stabilize essential industries, ensuring sustained economic growth.
Conversely, the EFF’s response, while acknowledging the positive aspect of the inflation decline, was critical of the South African Reserve Bank’s (SARB) monetary policies. EFF National Spokesperson Leigh-Ann Mathys argued that the SARB’s approach, particularly the interest rate hikes since July 2022, has been misguided. She highlighted that the economy’s growth remains stagnant, with unemployment and poverty continuing to rise. The EFF called for a more unconventional and broad-based approach to monetary policy, urging the Reserve Bank to reduce interest rates by 150 basis points in its next meeting to avoid further economic suffocation.
On social media platform X, opinions were mixed, with some users praising the ANC’s efforts to lower inflation, while others echoed the EFF’s concerns about the broader economic impacts of current policies. Many expressed frustration over the lack of tangible improvements in job creation and economic growth despite the lower inflation figures.
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