Wednesday, 20 August 2025.

The Economic Freedom Fighters (EFF) notes with concern the release of South Africa’s July 2025 Consumer Price Index (CPI) by Statistics South Africa, which shows that inflation rose to 3.5% year-on-year, up from 3.0% in June, marking the highest reading since September 2024. Prices increased by 0.9% between June and July, demonstrating that the cost of living continues to rise in ways that are unsustainable for the working class and poor.

The details of the report reveal sharp increases in essential categories. Food and nonalcoholic beverages rose by 5.7% compared to July 2024, contributing one full percentage point to headline inflation. Housing and utilities increased by 4.3%, also contributing a full percentage point. Electricity tariffs rose by 8.9% and water tariffs by 7.1%, further squeezing households already burdened by stagnant wages, high levels of debt, and widespread unemployment. Although fuel price adjustments in July were relatively modest, with an increase of 52 cents per litre, the overall trajectory points towards mounting costs for ordinary South Africans.

While the inflation rate remains within the South African Reserve Bank’s (SARB) target band of 3 to 6%, this offers no real comfort to millions who live in poverty. Inflation at 3.5% represents a direct erosion of household incomes in a country with a high unemployment rate. Rising prices, particularly of food and utilities, intensify the suffering of unemployed youth, retrenched workers, and grant-dependent families.

This inflationary rise must be understood against the backdrop of broader economic dynamics. Global economic changes, including rising United States tariffs are seeping into South Africa’s import basket and raising costs of living. At home, austerity measures pursued by the state weaken social services and worsen inequality, while retrenchments and persistent unemployment leave millions with no protection against rising prices. A weaker rand further exposes the economy, as depreciation increases the cost of imports, directly inflating household expenditure.

In this context, monetary policy choices by SARB cannot be left unchallenged. Despite cutting interest rates earlier this year, the persistence of inflation may stop further reductions. Yet South Africa urgently needs lower interest rates to stimulate investment, ease the debt burdens of households, and allow working families to borrow affordably. Protecting the narrow interests of financial markets at the expense of the people is unacceptable.

The EFF rejects the logic of austerity and market-driven governance that abandons the poor in the face of inflationary pressure. We call for immediate relief on essential costs, particularly electricity, water, and fuel and the expansion of social spending to shield the poor from the combined blows of rising prices and declining employment.

The government must invest aggressively in local food production, energy independence, and domestic manufacturing to reduce dependence on volatile global markets. Furthermore, urgent measures are needed to create sustainable jobs in both the public and private sectors, with a focus on absorbing retrenched workers and unemployed youth.

The July CPI is a mirror reflecting the daily struggle of our people and a reminder that economic freedom remains incomplete while households face rising costs with no protection. The EFF stands resolute in its call for a decisive shift away from austerity and towards a developmental state that places the needs of the poor and working class at the centre of economic policy.

ISSUED BY ECONOMIC FREEDOM FIGHTERS

Sinawo Thambo (National Spokesperson) 072 629 7422

Thembi Msane (National Spokesperson) 061 467 8169

Andiswa Madikazi (Parliament Media Liason) 069 516 4924

Thato Lebyane (Media Inquiries) 078 563 1581