Government has welcomed the cooling of consumer inflation for the first time in five months, with Statistics South Africa reporting a decline to 4,3% in July from 5,0% in June.
The monthly increase in the Consumer Price Index (CPI) also moderated to 0,2% in July, down significantly from 0,7% in June.
Government said the decline provides some relief to households and eases pressure on the cost of living.
“Government recognises that many South Africans continue to face significant household financial pressures. While the easing of inflation is positive, Government remains focused on measures that support households, strengthen food and energy security, create employment opportunities and promote inclusive economic growth,” the Government Communication and Information System (GCIS) said on Wednesday in a statement.
In addition, the moderation of inflation can create a favourable environment for economic activity and contribute to improved economic confidence.
“The latest inflation figures are a positive development, and Government will continue to work with social partners to address economic constraints and to advance measures aimed at reducing the cost of living and improving the wellbeing of South Africans.” -SAnews.gov.za
