25 August 2022
The Federation of Unions of South Africa (FEDUSA) noted with dismay the latest announcement of a record high – increase in consumer inflation. The Consumer Price Index (CPIX) reached its highest level in 13 years, increasing from 7.4% in June to 7.8% in July.
Annual food inflation again increased significantly with the biggest price hikes in oils and fats which are essential household items. A 10% hike in fuel prices in July resulted in taxi fares rising by 9% in a single month. This rise in inflation will have a devastating effect on many working people and households overall.
FEDUSA calls on Government to urgently intervene and relieve the burden on the poor and working people who have had to endure continued hardships and income insecurity due to various external shocks. The Federation therefore demands that Government upholds its promises to the nation in fulfilling its aspirations of its grand policy positions to maintain a developmental state and a social compact through immediately :
- Fast tracking reforms of the fuel levy / taxes to bring relief to motorists and the public.
- Urgently fix the public transport system in particular our passenger rail network ( PRASA).
- Fast track the implementation of a Basic Income Grant (BIG).
- Expedite the parliamentary process to allow partial access to retirement funds.
- Implement measures to reduce the ever – increasing food prices and food security.
FEDUSA further cautions the Reserve Bank Governor and the Monetary Policy Committee (MPC) to avoid emotional decision – making and inflexible approaches to safeguard inflation targeting policies. Another drastic hike in interest rates will only serve to further insult and cripple the working class and marginalised communities by stifling disposable income and retarding economic growth.
For interviews please contact:
Ms Riefdah Ajam
FEDUSA General Secretary
079 696 2625
Mr. Ashley Benjamin
FEDUSA Deputy General Secretary
083 258 4433