Inflation is a measure of the annual percentage change in consumer prices. For example, a 2% inflation rate means that the cost of living has increased by 2% in one year.
The Bureau for Economic Research (BER calculates inflation rates) using data from Statistics South Africa (Stats SA). The BER also provides an inflation indicator based on its own estimates based on various sources such as:
- food prices;
- fuel and power;
- housing rentals;
- clothing and footwear purchases
The inflation rate is calculated by the Bureau for Economic Research.
The Bureau for Economic Research (BER) is an independent research organization that provides data on the South African economy. BER’s mission is to help develop policies that improve the quality of life in South Africa through research and analysis.
The Bureau for Economic Research calculates inflation rates using a combination of surveys, official sources and other methods when needed. Inflation measures how prices change over time, whether it be weekly or monthly basis – this is the area where we can see how much our money goes up each year due to rising prices!
Example: If you bought something for R100 last year and you are buying the same thing this year, it will cost you R102 this year if the inflation was 2% (R2 extra).
The CPI inflation rates in the table are presented both on a monthly basis (compared to the month before) and yearly (compared to the same month last year), where available.
Statisticians and economists use the Consumer Price Index (CPI) to measure inflation. The CPI measures changes in prices over time by comparing current prices with those from an earlier period, such as last year or even two years ago. You can do this either using all items sold or just some key products, depending on how you want your results presented.
Conclusion
The CPI inflation rate in South Africa is currently at 4.1%. This means that the price of food, clothing and other goods and services has gone up by about 4% in the last 12 months.
