EFF STATEMENT ON ANNUAL CONSUMER PRICE INFLATION
Sunday, 24 April 2022
The EFF is not shocked by the increase in consumer price inflation as reported by Statistics SA. It does not come as a surprise that the price of essential goods and services has increased drastically between the beginning of the year and the end of March, as the government has demonstrated a lack of interest and incompetence in overhauling the country's macroeconomic policy. The ANC, hoodwinked and captured by the financial sector, has prioritized the interests of the financial sector above all other interests at all costs.
The consumer price index, which measures the average change in price that consumers pay for a basket of goods and services, increased by 1% month-on-month in March 2022, and consumer price inflation increased from 5.7% in February to 5.9% in March 2022. This means that households must pay more for essential goods and services necessary for survival during high levels of unemployment and stagnant wages, and an economy that is mismanaged.
The EFF is more concerned that food, housing, electricity and water, and transport services are the main contributors of the increase in the consumer price inflation. The ANC has entrusted the manufacturing and distribution of all essential goods and services to the white capitalist establishment that has always put profit over broader societal interest and livelihood of our people. A system that has guaranteed whites more wealth while Black people get poorer, subjecting an overwhelming burden on African women who have to take care of their families and extended families.
The collapse of Eskom, PRASA and water boards has led to a drastic increase in the price of electricity, transport and water costs as these important essentials for survival are now all produced mainly for profiteering without considering the developmental needs of South Africa. The collapse of strategic state-owned entities entrusted with essential services is made worse by the collapse of the local government sphere that is incapable of delivering services, including constitutionally guaranteed basic services.
There is no evidence that the National Treasury has appreciation of the difficulties faced by the working class and poor families. This was demonstrated by the so-called intervention by the finance minister in the past week, who made meaningless pronouncement to address petrol prices, yet the prices remained extremely high. In fact, the National Treasury is hellbent on defunding Statistics SA to compromise the quality of data and thereby undermine any effort to use data to inform policies.
The EFF remains convinced that the only way to meaningfully address increasing prices of essential goods and services is for the state to lead industrialisation, create jobs, and ensure redistribution of wealth anchored on capable state.
Statement issued by the EFF, 24 April 2022
