ANC Statements

The ANC welcomes the decrease in the inflation rate of 4.7%, the lowest in 2 years, which is close to the mid-range targeting of 4.5%. This suggests a strong business case exists to hold off on further rate hikes and consider potential rate drops in the coming quarters, the trade-off between inflation targeting and deflation risks is crucial for inclusive economic growth.

The rise of inflation has been attributed to factors such as rising food prices, energy prices, and the disruption of established trade patterns. However, the substantial decrease in inflation is a positive indication of the resilience of our economy and sets us on a path of economic recovery.

The ANC is cautiously optimistic that potential rate drops can maintain or continue to drop inflation at a lower rate, which is crucial for the people of South Africa, as it will significantly lower the cost of living.

Moving forward, our work through our deployees in government needs to sustain this momentum by ensuring that we:

• Accelerating the implementation of the Economic Reconstruction and Recovery Plan to advance, amongst other objectives, increased infrastructure investment, improved energy security, and broader access to improved data services;

• Expanding investment in infrastructure to improve community access to essential services, increase the overall efficiency and competitiveness of the economy;

• Structural reforms of network industries, including electricity, telecoms, water, rail, aviation, and road infrastructure to improve performance;

Building an ethical and capable state;

Strengthening industrial policy interventions to support the growth and expansion of the manufacturing and services sectors, and

Prioritising youth employment across all areas of intervention so that we can ensure productive opportunities for black people, women and young people in particular.

The ANC will continue to monitor key economic data and assess the impact on the lives of our people.