South Africa Core Consumer Price Index (CPI) m/m

Core Consumer Price Index (Core CPI) m/m reflects changes in prices of goods and services in the given month compared to the previous one. The index reflects price changes from the perspective of households, i.e. end consumers of goods and services.

The index is calculated as a change in the value of goods and services included in a fixed consumer basket. Goods and services which are representative of household spending are included in the consumer basket. The basket is revised from time to time. Currently it includes 12 categories of goods and services, such as food and beverages, clothes, home appliances, transportation and education services, among others. Different weights are given to the goods and services, reflecting related expenditure shares in final consumption expenditure. Weights are adjusted every 4-5 years.

Food, alcohol, tobacco and energy are excluded from the Core CPI calculation due to their high volatility. The core index ignores goods and services, which are not part of households' final consumer spending, as well as some categories of expenses which cannot be included in the single system, such as gambling, imputed rental of housing, life insurance, state health insurance, financial intermediation services indirectly measured, etc.

Consumer Price Index is one of key indicators to measure inflation. A higher than expected reading is considered positive for ZAR quotes, while lower readings are seen as negative.