The Consumer Price Index (CPI) and Producer Price Index (PPI) are the two primary measures of inflation for South Africa. Both indicators are published on a monthly basis.The Consumer Price Index tracks the rate of change in the prices of goods and services purchased by consumers. The headline CPI is used as the inflation target measure which guides the South African Reserve Bank on the setting of interest rates.
The Producer Price Index tracks the rate of change in the prices charged by producers of goods. Stats SA publishes PPIs for different industries with the PPI for final manufactured goods being the headline PPI. Additional PPIs are compiled for Agriculture, forestry and fishing; Mining and quarrying; Electricity and water; Intermediate manufactured goods; Imports and Exports; and Construction.
The PPI is widely used by businesses as a contract escalator and as a general indicator of inflationary pressures in the economy.
Food inflation recorded its fourth successive year on year increase and is now at its highest point for the year. The inflationary pressures are distributed across a range of food groups, with processed food reflecting a higher rate of inflation at 7,6% compared to processed food at 6,3%. Prices of alcoholic beverages dropped on average by 0,3% read more »