Fin24

Mageu, tablet computers in inflation count

2012-11-06 15:20

Johannesburg - Mageu, feta cheese, hot chocolate and filtered coffee will form part of the CPI basket from January 2013, Statistics SA (StatsSA) said on Tuesday.

They would be among the list of goods and services used when calculating the consumer price index next year.

Items in the CPI basket are representative of the main categories of goods and services typically bought by households.

The changes to the basket indicated shifts in consumer choices.

Other products which would be included in the CPI basket from January next year were vodka, bricks and cement, energy-saving light bulbs, tablet computers, hair extensions, and package holidays.

Items leaving the CPI basket were samp, savoury biscuits, dried fruits and nuts, frozen vegetables, dried lentils and peas, and vienna sausages.

Presently, there were 402 items in the CPI basket. The new basket would have 393.

Stats SA price and employment statistics executive manager Patrick Kelly said: "Another significant change will be a basket for each primary urban area, secondary urban area, and rural area in each province."

At present, there was only one CPI basket for each province.

Kelly said one of the reasons for the change in the provincial basket was that there were goods and services consumed by people in urban areas, but not in the rural areas of the same province.

"It must be noted that the baskets reflect the pattern of residence rather than the point at which purchases are made."

There would also be changes in the weights of the items in the basket. All indices would be rebased to 100. The new base would be 2012, while the current base was 2008.

Kelly said there would be changes to the Producer Price Inflation index as of January 2013.

Meanwhile, Reuters reportsthat the weighting of electricity and fuels will almost double to 4.1% from the current 2.1%, reflecting a steady rise in electricity tariffs from state utility Eskom. Petrol will rise to 5.4% from 3.6%.

Household contents and services also dropped in weighting, to 4.9% from 6.1%.

Analysts said the changes would not make a marked difference to headline inflation, which quickened to 5.5% in September.

Comments
  • kritzinger - 2012-11-06 15:39

    Who else had to Google Mageu?

      andre.ernstzen - 2012-11-06 16:08

      Lol I'm still scratching my head

  • tertius.aswegen - 2012-11-06 15:40

    Is there a story here?

      napolita.kio - 2012-11-06 15:52

      Yes there is a story, which is that in case you were still in the dark as to the meaninglessness of the CPI then you are now provided with facts to HOPEFULLY see it for yourself that indeed it is the case, CPI is meaningless.

  • napolita.kio - 2012-11-06 15:45

    Unbelievable, vodka??? Here's some help Stats SA: Only include, in the CPI basket, things we (the majority of people) NEED and NOT the things we want regardless of how many people buy their "wants" Now here are the things we need energy, education, insurance,transportation And things we want LCD TV, Plasma TV, cell phones, laptops You can argue with the list above but the gist of the message stays. The trend is clear, inflation is ALWAYS in things we need and deflation in things we want. Therefore, the trick in keeping inflation low is to simply include more deflationary items and minimize inflationary ones.

      gerald.king.589 - 2012-11-06 16:50

      Personally i'd rahter consider a CPI reflecting ALL DEMANDS, not needs as such. Its still the economy's money that just bought your bose for 10k (or whateevr yr weakness).

  • rowan.maulson - 2012-11-06 15:50

    Tablet Computers ?!?!? Really? And removing Frozen Vegetables?, I don't know of a house hold that doesn't buy frozen veggies.

      thozi.thozamile - 2012-11-06 16:26

      Frozen Veggies? You obviously move around the upper echelon of society only...

      Werewabbit - 2012-11-06 16:27

      Mine! We live in a Digs and cook separately. most have a quick bite to eat then head out again or dive into their books. only thing in our freezer is Ice and ice cream.

      jay.kganyago.5 - 2012-11-06 16:42

      The fix is in, they need CPI to look low. Package holidays r cheaper bcos nobody can afford them. And tech products becoming cheaper due to improvements in tehcnology, is this a joke? They have given up and r not even trying 2 make CPI look legitimate anymore.

  • whatda.fuqbro - 2012-11-06 15:58

    Bleugh... Mageu. That's some nasty shizle.

  • SarelJBotha - 2012-11-06 16:13

    Mageu and vodka, thus the masses drink their troubles away with gageu while the fatcats drink vodka to celebrate robbing us all.

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