Inflation in South Africa has dropped to a new three-year low, with domestic workers’ salaries now increasing in real terms. <\/p>\n\n\n\n
Stats SA data showed that annual consumer inflation<\/strong> cooled for the fourth month, dropping from 4.4% in August to 3.8% in September. <\/strong><\/p>\n\n\n\n This is well below the South African Reserve Bank’s target of 4.5% and should ensure that interest rates decline are cut when the Monetary Policy Committee meets next month. <\/p>\n\n\n\n The last inflation print is also the lowest since March 2021, when the rate stood at 3.2%. <\/p>\n\n\n\n On average, prices increased by 0.1% between August 2024 and September 2024.<\/p>\n\n\n\n Notably, domestic worker wages<\/strong> (surveyed quarterly) rose by an annual 4.1% in Q3 2024<\/strong> – above the annual increase of 3.9% in Q2 2024. <\/p>\n\n\n\n This means domestic worker wages rose above the headline inflation figure, ensuring real wage growth of 0.3%.<\/p>\n\n\n\n This is a rare win for domestic workers in South Africa, who have faced a challenging few years following the Covid-19 pandemic. <\/p>\n\n\n\n The National Minimum Wage was set at R27.58 per hour in February, which translates to approximately R4,400 per month for full-time work.<\/p>\n\n\n\n Nevertheless, actual earnings are significantly lower, with the average domestic worker earning R3,349 per month for women and R3,059 for men.<\/p>\n\n\n\n