South Africa during the 1970s and 80s were associated with arise in inflation from 6 % to a high 16,6 % in 1986 .Double digit inflation , coupled with high levels of unemployment characterize an economy in the grip of stagflation ,which is a situation where there is high inflation . The ability of the unions to negotiate increases above the inflation rate .
Employers thus conceded in the face of industrial action , but many instances compensated by simply passing on price increases to the consumer