BusinessLive reports that consumer price inflation slowed to its lowest level in almost 15 years in April, as SA went into its most severe period of lockdown restrictions when only essential goods and services were available.
The consumer price index (CPI), which slowed to 3% in April from 4.1% in March, is now at the bottom of the SA Reserve Bank’s (SARB’s) target range of between 3% and 6%. According to Stats SA, which released the data on Wednesday, April’s rate of 3% was the lowest inflation has been since June 2005, when it was at 2.8%. The outcome could add to calls for the SARB to cut interest rates further to help support the economy during the Covid-19 crisis. Due to the lockdown measures Stats SA had to make significant adjustments to its CPI collection methods, as the restrictions prevented the sale of a number of items ranging from clothing to alcohol. As a result, the April CPI was based on a “significantly limited sample”. Prices for 171 products, equivalent to 20% of the weight of the CPI basket, were collected online. Indices where products were not available for sale were estimated using the headline inflation rate.
- Read the full original of the report in the above regard by Lynley Donnelly at BusinessLive
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