The Congress of South African Trade Unions (COSATU) welcomes the sharp fall in consumer price inflation (CPI) from 4.4% to 3.8%.  This will provide invaluable comfort to millions of workers, help them to heal their financial wounds, take care of their families and pay their debts.

Whilst appreciating this badly needed relief to the working class and the economy, we urge the South African Reserve Bank (SARB) to move with speed to reduce the repo rate and give further critical assistance to workers who are drowning in debt and have been overwhelmed by the painful increases in the cost of living over the past two years.  We trust that the SARB will provide at least a 50-basis point cut in its next Monetary Policy Meeting due in a few weeks.

It is equally important that government led by the African National Congress expedite interventions providing 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.

Issued by COSATU

For further information please contact:

Matthew Parks(COSATU Parliamentary Coordinator)

Cell: 082 785 0687

Email: matthew@cosatu.org.za