Inflation

Quick Fact

Monthly change in fruit prices: -7,3%.

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.

Consumer Price Index

Producer Price Index

South Africa’s CPI reveals how volatile inflation hurts the poorest

Patrick Kelly, Executive Manager for Price Statistics, provides some insights into how inflation affects the most vulnerable. The combined effect of the severe drought and the depreciation of the rand drove annual food inflation to 9,8% in March, its highest level in four years. Periods of high food inflation often spark an outpouring of concern   read more »