Government on Thursday said the significant easing of consumer price inflation (CPI) provided relief for households and businesses by lowering transport and input costs, helping to support overall economic activity, however, it called for collaboration as it acknowledged persistent challenges.

Government welcomed the latest data from Statistics South Africa (Stats SA), which showed a sharp decline in CPI to 2.8% in October 2024, down from 3.8% recorded in September 2024.

Acting government spokesperson Nomonde Mnukwa pointed out that this marked the lowest inflation rate since June 2020, when the country experienced a rate of 2.2% during the Covid-19 pandemic.

“According to Stats SA, October's CPI decline was primarily driven by falling fuel prices. Petrol and diesel prices decreased by 5.3% between September and October, resulting in an annual fuel inflation rate of -19.1%. Notably, the inland price of 95-octane petrol in October stood at R21.05 per litre, the lowest since February 2022, when the price was R20.14 per litre,” she said.

Government announced that it was continuing to work on interventions to reduce the cost of fuel and in other critical areas to ease the financial burden on citizens.

Meanwhile, the GOOD Party called on the South African Reserve Bank Monetary Policy Committee to grant extra relief to cash-indebted consumers and reduce the Repo rate.

GOOD secretary general Brett Herron said consumers continued to face increasingly difficult decisions around spending with the rising cost of living, leaving most South Africans struggling for their basic survival.

“Our people have suffered the crippling effects of an under-performing economy for far over a decade. A significant interest rate cut will contribute to stimulating the economy,” he explained.

Herron highlighted that South Africans urgently needed an economy that created long-term jobs, and addressed the high levels of inequality and poverty for inclusive growth.