SOUTH AFRICA, Johannesburg, 13 December 2024 – With the festive season in full swing, the latest Consumer Price Index (CPI) figures offer a mixed picture for South African consumers. While a marginal increase in CPI to 2.9%, driven by higher fuel prices, may strain budgets, the significant decline in food inflation to its lowest point in 14 years provides some positive relief. Against this backdrop, Brandon Cohen, Chairperson of the National Automobil Dealers’ Association, shares insights on the economic implications and the potential for a rate cut to support consumer confidence and spending.

“The slight uptick in CPI to 2.9%, driven by higher fuel prices, comes as the festive buying frenzy kicks in, putting additional pressure on household budgets. However, the encouraging news of food inflation hitting a 14-year low offers much-needed relief to consumers and bolsters the case for a potential rate cut in January. Lower interest rates would not only ease financial strain but also fuel consumer confidence and spending, which are critical during this peak retail period. NADA remains optimistic that balanced monetary policy decisions will drive economic activity and sustain growth across sectors, including automotive retail.”

NADA is a proud association of the Retail Motor Industry Organisation (RMI).