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Inflation falls to 15-year low

Siobhan Redford – Economist, RMB.

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Why do you report a monthly number??? In economics it’s not really important????????????

Inflation could go negative for a while but it means nothing.

If you don’t make it attractive for international investors then you don’t get the money.

But beware inflation has a nasty habit of bouncing back quicker than you think.

Not surprised…no money left to chase anything!

THe Inflation formula is rigged!

Dont believe these people.

Fuel prices have rises…. my medical aid is sky rocketing…..

Stats SA … like the rest of government is useless

Just because the basket used by Stats SA is not the same as your monthly shopping does not mean it is some plot by the Illuminati against you.

Stats SA publish the composition of its basket in painstaking detail, it also gives the price indices for each of the categories. So if you really want to you can construct your own DragonX CPI.

I do not know where you fill up your tank, but you should consider switching because fuel prices are materially lower, The price of inland 95-octane petrol, for example, was R12,22 per litre in May 2020. In May 2019, the price was R16,67.

Interesting but based on reality in real life in SA this number is suspect!

2.1% is NOT my experience. Fresh food prices rocketed in April/May.
Yes, I’m fully aware of the fact that the CPI contains a large basket of items which distorts the food price increase.
There should be a separate index which monitors, say, the 100 most commonally purchased foods in S.A., in addition to the CPI (which includes thousands of items).

Stats SA discloses an index for each and every category

However a “headline” number is needed that reflects general inflation. This will of course not reflect everybody’s experience. I must admit I get very frustarted with comments about this not being a particular clients experience with buying a bunch of bananas from his local PnP last week.

Food inflation on its own was +5% yoy, but food only constitutes 17% of the index. Transport (fuel, taxi and bus fares + vehicle coast and maintenance) makes up 14% of the index and it declined by 8% yoy, negating other items.

You canm drill down even deeper, meat 5.5% of index saw a 6% yoy increase, while fresh fruit jumped by 17% year on year but it makes up 0.34% of the basket. This is a sad indictment of the healthy food choices of South Africans in general, but it probably explains the inconsistency between your personal experience and what is an index constructed on weights that reflect people from all levels of society.

Stats Sa one of the few gov agencies that actually does a good job.

Yourself and most other commentators shootin g from the hip are not govering yourselves in glory. You are making bold statements without even going to the trouble of doing any bit of research – it is as simple as to type “stats sa inflation basket”. Youy end up showcasing a painfully ignorant view.

http://www.statssa.gov.za/publications/P0141/P0141May2020.pdf

Nobody believes any figures that the government presents any more.
Why don’t they ever publish the numbers of people charged for corruption, if there are any?

There’s a distinct difference between CPI and suburban inflation – the CPI basket is heavily weighted towards the spending patterns of lower-income households. The price of fuel, fresh produce, electricity and medical aid will continue to put pressure on the overtaxed middle class.

End of comments.

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