SA wages ‘too low’ for economic reprieve
A consumer expert says wages in South Africa are too low for any possible economic reprieve.
In a lecture at the University of Free State on Thursday night, Reserve Bank Governor Lesetja Kganyago said the consumer basket is 26% higher than it was before the Covid-19 pandemic.
He said it's as a result of high price inflation.
"Some basic food items like rice, tomatoes, beans, eggs and toothpaste are as much as 70% more expensive. To put this into context, had prices for these staples continued to rise at our targeted 4.5% inflation rate, these prices would be more than 30% cheaper than they are today."
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Kganyago added that households across the country have had to reprioritise their spending.
Mervyn Abrahams, programme coordinator at the Pietermaritzburg Economic Justice and Dignity Group, says an urgent solution is needed to help struggling consumers.
"Inflation is a reality of economic life, it is going to go up and down. We need levels of income that actually help households to be able to save so that when we are hit recessionary period, we can actually get through it based on our savings and, currently, that is not the situation."
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