Statistics South Africa
Statistics South Africa (StatsSA) plans to introduce improvements to the consumer price index (CPI) and the producer price index (PPI).
In a media statement, Stats SA confirms that the improvements will consist of more frequent updates of the CPI and the PPI as well as a new format for the PPI.
The envisaged changes include:
• PPI weights to be updated annually-with effect from 2014
• CPI weights to be updated every three years-with effect from January 2013
• New format for the PPI-with effect from mid-2012
• Launch of the personal inflation calculator-on StatsSA website
The statement adds that both the CPI and PPI weights are at present being updated every five years.
The national accounts as well as a variety of industry surveys and records are used to determine the PPI.
The updates will be made at the beginning of every year.
“This will ensure the index reflects changes in the distribution of production in the economy as soon as source data is available”.
As regards the CPI, the income and expenditure survey is used to determine the weights. The living conditions survey will now be added to the list of sourced data.
StatSA indicates that the envisaged updating of the weights every three years will allow the “CPI to better reflect changes in consumer expenditure patterns”.
Four additional indices are to be added to the PPI:
• Agriculture, forestry and fisheries
• Mining and quarrying
• Electricity and water
• Intermediate manufactured goods
The “all groups” PPI is also to be discontinued.
The personal inflation calculator enables South Africans to work out their own personal inflation rates.
Sabinet Cape Town Office
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