BUSINESS NEWS - Government has welcomed the decline in South Africa’s consumer inflation, which fell to 4.3% in July from 5.0% in June, according to Statistics South Africa.

The decrease marks the first cooling of consumer inflation in five months.

The monthly increase in the Consumer Price Index (CPI) also slowed to 0.2% in July, down significantly from 0.7% in June.

Inflation easing offers relief to households

Government said the lower inflation rate provides some relief to households facing ongoing financial pressure.

“Government recognises that many South Africans continue to face significant household financial pressures,” the Government Communication and Information System (GCIS) said in a statement on Wednesday.

“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.”

Lower inflation could support economic activity

Government said the moderation in inflation could also create a more 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,” said the GCIS.

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