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ActionSA welcomes the latest inflation data released by StatsSA today, which reflects the resilience of the South African Reserve Bank's (SARB) monetary policy in the face of persistent economic headwinds and political pressure. 

Annual consumer inflation has retreated for the fourth consecutive month, easing to 3.8% in September – its lowest since March 2021. This achievement demonstrates the effectiveness of SARB’s disciplined approach to monetary policy during a time of ongoing economic uncertainty.

The lowering of CPI provides scope for the Reserve Bank to further reduce interest rates. This has real human consequences. Inflation has the greatest impact on the poorest of the poor and as such the lowering of inflation is hugely positive for those hit hardest by recent high inflation and high cost of living.

While the government of national unity (GNU) might be eager to take credit for this positive development, it is SARB’s austere and responsible monetary policy that has successfully navigated South Africa through tough economic conditions. Over the past year, SARB’s decisive interest rate hikes and commitment to inflation targeting have helped moderate price increases across the economy, including critical areas like food and consumer goods.

The decrease in transport inflation, primarily driven by falling fuel prices, is a welcome relief for South African households. However, this decline is largely due to external factors such as lower global oil prices and exchange rate movements, rather than any of the GNU’s doing. It is SARB’s efforts, however, that have ensured that overall inflationary pressures, particularly in areas they can influence, did not worsen.

The GNU government should take note that effective governance requires more than bragging on Instagram. It requires strong, independent institutions like SARB, whose focused policy action stands in stark contrast to the government's failures in addressing South Africa’s structural economic challenges.

ActionSA reiterates its full support for SARB’s independent mandate and calls for greater transparency and accountability in the government’s role in economic recovery. South Africans deserve to know that their relief from inflation is the result of competent monetary policy, not political grandstanding.

Issued by ActionSA Member of Parliament Alan Beesley