The share of Consumer Price Index (CPI) 8-digit items growing above the mid-point inflation target of 4.5% are now at post 2009 lows, both when considering the number of detailed CPI components at 8 digit level or the combined weight in the index of such items. 8-Digit CPI includes consumer price indices at category grouping such as a ‘loaf of white bread’. The chart by Lisa Martin shows that the decline in inflation has been broad-based, since the profile of the unweighted and weighted individual components of the consumer basket are similar.
However, uncertainty persists, as Codera’s core inflation measure, CPI-Common, suggests more broad-based inflation pressures than those indicated by Statistics SA’s core inflation measure and its trimmed mean measure. Codera also estimates that CPI has been lower by an average of 0.5 percentage points since 2009 if measured using the most recent CPI weights.
