Name change on cards for CPIX

"That is the closest we can get and we will be retaining it for people with legal agreements tied to that measure," he said.

Kelly notes that in the new CPI basket, the highest weighting of around 13% would go to the new OER, which measures the cost to owners of foregoing rental income by living in their properties.

He explains that the CPIX will thus not be given a lot of prominence going forward.

"The feeling is that there should be a focus on one measure - CPI - but we will publish whatever measure they (Treasury and Reserve Bank) ask us to publish," said Kelly.

"We did speak to the South African Reserve Bank (SARB) prior to making these changes to CPI and they said they were happy with the changes," he noted.

"We have a good relationship with the SARB and are able to discuss methodological issues," he added.

In answer to a question, Kelly also pointed out that Stats SA does not give either the SARB or Treasury pre-sight into numbers prior to their official release.

"I can tell you there is no pre-sight," he said, adding that this was in line with international practice via the International Monetary Fund.

"Now Treasury must decide which measure they want to target," concluded Kelly.

The current inflation target range of 3% to 6% in South Africa targets CPIX inflation, which excludes home loan costs. However, in the new CPI index to be published in February next year, home loan costs are replaced with OER.

It is generally expected that CPI is due to fall next year due to a lower weighting in both indices for food, but it is not known exactly by how much, with conjecture stretching from a potential 0.5% to 3% reduction in the private sector and some feeling it will be very marginal.

- I-Net Bridge