CPI could hit 6% by 2016 - inflation expert | Fin24
 
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CPI could hit 6% by 2016 - inflation expert

Jul 22 2015 07:47
Matthew le Cordeur

Cape Town – The Consumer Price Index (CPI) will likely show an increase to 4.7% in June 2015, showing a 0.4% month-on-month (m/m) increase, according to an inflation expert on Tuesday.

Stats SA will announce the official results on Wednesday morning.

This is the fourth monthly increase in year-on-year (y/y) inflation following six months of decreases, according to The Inflation Factory’s (TIF) Riyadh Bhyat.

“Simple projections of CPI show the y/y rate continuing to increase through to January 2016, with a strong chance of (the CPI) breaching the 6% ceiling by that time,” he said.

Examining the price of books over the last year, TIF revealed that there was a 21% increase in book prices over the last year, which he said “bodes ill for broadening the number of South African readers”.

Only 14% of South Africans consider themselves committed to reading, with a main reason for this being the high purchase price of books which discourages mass consumption, according to Factors Influencing the Cost of Books in South Africa, SABDC.

GRAPH: Books vs TIF CPI Index   

Source: The Inflation Factory

inflation  |  cpi
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