South African households still under pressure despite inflation dropping to 5-year low

SOUTH Africa’s consumers received a sliver of hope this week as Statistics South Africa (Stats SA) announced a significant drop in inflation from 3.2% to 2.7% in March, marking the lowest level seen in five years.

- YOGASHEN PILLAY

While this decline was seen as a promising development, experts warned that many households were still grappling with rising costs that continue to exert pressure on their budgets.

Neil Roets, CEO of Debt Rescue, welcomed the news, suggesting it might bolster the case for a potential interest rate cut. “This brings a glimmer of hope to struggling South African households and strengthens the case for a potential interest rate cut. Lower inflation reduces pressure on the Reserve Bank, and while a cautious approach is likely, we're hopeful that rate relief will come before the end of the year,” he said.

Roets added that although this was encouraging, they remained concerned particularly as essential goods were not becoming more affordable.