EFF hails decline in inflation rate to 3.8%, slams monetary policy

The Economic Freedom Fighters (EFF) has welcomed the latest consumer price inflation figures released by Statistics South Africa, which show a decline from 4.4% in August 2024 to 3.8% in September 2024.

This marks the lowest inflation rate since March 2021, when inflation stood at 3.2%.

According to EFF National Spokesperson, Leigh-Ann Mathys, these figures confirm that South Africa’s inflationary pressures are not driven by demand, but rather by systemic economic and global challenges.

“This requires a different monetary policy approach, not a regressive high-interest regime,” Mathys emphasised.

The EFF has consistently criticized the South African Reserve Bank’s monetary policy, which has pursued a path of economic strangulation since July 2022.

Despite calls for a more unconventional and inclusive approach, the Reserve Bank has relied on outdated monetary tools, exacerbating unemployment, inequality, and poverty.

South Africa’s economy has stagnated, failing to achieve growth rates above 2% in any meaningful quarter over the past decade.

High unemployment, poverty, and economic inequality persist, while banks have reported record profits, benefiting from high interest rates that have pushed many working-class South Africans into unsustainable debt.

The EFF is calling for more decisive action from the South African Reserve Bank and the Monetary Policy Committee.

While the 25 basis point cut in September is a step in the right direction, it is insufficient given the severe damage inflicted on the economy.

The EFF maintains that there was room for a more substantial cut, had the Committee fully appreciated the impact of high interest rates on job losses and financial strain.

Mathys concluded, “It’s time for the Reserve Bank to adopt a progressive, responsive, and inclusive approach that addresses the real economic challenges facing our people. Failure to do so will only prolong the suffering of the working class and deepen the economic crisis in South Africa.”