Social grants affect prices for poor, study finds
Grants for child support and disability increase food inflation, while old-age grants increase housing inflation
25 January 2024 - 05:00
SA has one of the world’s largest social welfare systems, providing cash to millions of poor and vulnerable citizens. But how do these grants affect the prices of goods and services that the recipients consume? A new study (https://www.resbank.co.za/content/dam/sarb/publications/working-papers/2024/WP%202401.pdf) sheds some light on that question.
The study, conducted by researchers from the Reserve Bank, examines the relationship between existing grants and prices in SA using annual price and household survey data from 2009 to 2021...
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