
23/07/2025
UASA Media Release: 23 July 2025
CPI creeping up to lower edge of SARB target band, threatening consumer spending
Statement by Abigail Moyo, spokesperson of the trade union UASA
UASA expresses concern regarding the Consumer Price Inflation (CPI), which rose to 3% in June, up from 2.8% in May.
This increase is troubling, especially considering that inflation had been below 3%, the lower limit of the South African Reserve Bank’s (SARB) target band, between March and May.
According to Stats SA, the main contributors to the annual inflation rate were housing and utilities, which increased by 4.4% and food and non-alcoholic beverages, which rose by 5.1%. Additionally, household electricity and gas prices increased by 11% compared to the previous year, primarily due to recent Eskom price hikes.
Eskom’s electricity tariffs increased in April, and municipal power tariffs took effect in July. This has posed significant financial challenges for many consumers, as evidenced by recent protests organised by Tembisa residents who are fighting against these tariff increases.
While June’s inflation rate was slightly higher, it remains in line with inflation targets and expectations, which could support the SARB’s Monetary Policy Committee (MPC) in deciding to cut the repo rate by 25 basis points to 7% next Thursday.
UASA hopes that the MPC will consider the positives in its repo rate decision and that fuel prices in August will decrease, benefiting consumer spending. We further hope that inflation will stay within the 3% target range or lower.
For further enquiries or to set up a personal interview,
contact Abigail Moyo at 065 170 0162.