Over the past few months, South African consumers have been hit by steep price increases that have dramatically affected their quality of life, says president Cyril Ramaphosa.<\/p>\n
Writing in his weekly open letter to the public, Ramaphosa said it has become increasingly more expensive to buy food and other essentials, to pay for basic services, and to use public or private transportation. While these rising costs affect everyone, low-income households are feeling them the most.<\/p>\n
“The latest Consumer Price Index for April 2022 published by Stats SA shows there has been little respite for hard-pressed South Africans.<\/p>\n
“Food inflation was recorded at 6.2%. The most basic foodstuffs cost more than a year ago, with staples like cooking oil recording the highest increases. The price of fuel, which affects the price of almost everything else, has risen by a third in the twelve months to March 2022.”<\/p>\n
However, South Africa is not alone in this regard, the president said.<\/p>\n
He pointed to a recent poll by the World Economic Forum which shows that nearly a quarter of people globally, including those in developed economies, are struggling financially due to rising prices.<\/p>\n
“These increases, particularly the price of fuel, are the consequence of events over which we have little control. The ongoing conflict between Russia and Ukraine has had a significant impact on the price of fuel and food. Both countries are major exporters to international markets of fertilisers, grains and oilseeds that are needed for a range of items such as cooking oil.<\/p>\n
“Another factor is lower agricultural output due to extreme weather events caused by climate change, such as flooding and droughts. While many of these events are beyond our control, the government is doing what it can to shield the South African from current and future price increases.”<\/p>\n
Interventions\u00a0<\/strong><\/p>\n Ramaphosa pointed to the recently extended petrol price levy as one of the interventions his government has introduced.<\/p>\n He added that the government is investing heavily in improving local agricultural capacity, supporting commercial and small-scale farmers alike and helping more people to grow their own food.\u00a0 The country’s extensive social grants system and zero-rating of basic goods also help to protect the poor from rising costs, he said.<\/p>\n “For our part, the government will continue to monitor the situation closely and will do everything within its power to protect South Africans from unsustainable increases in the cost of living.<\/p>\n “Corporate South Africa should ensure that consumers do not pay more for food than they have to. We welcome the indications from food manufacturers and retailers that they are putting measures in place to help consumers get more for their money.”<\/p>\n He added that government will use its\u00a0competition regulations to protect consumers against unjustifiable price increases and anticompetitive practices by businesses, as it did during the Covid-19 pandemic.<\/p>\n “Though oil prices and extreme weather are events over which we have little control, there is still much we can do, as government, business, labour and communities to help the people of South Africa through this difficult time.”<\/p>\n
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