CPI and Inflation Report August 2019
The consumer price index, (CPI) which measures inflation increased by 11.02 percent (year-on-year) in August 2019. This is 0.06 percent points lower than the rate recorded in July 2019 (11.08) percent.
Accordingly, disinflation continued in August 2019 despite several pronouncements regarding restrictions on the import of some food items, minimum wage and the recent border closures. It is important to note that with respect to the latter, the border was only closed 20 August 2019 with only 11 days of 31days for any significant impact to be felt either way on prices. The inflation rate is also the average prices for the whole month and not only the price of goods and services in the last few days of the month. Furthermore, the harvest season and existing weak consumer demand and their natural effect to slow down food and other prices will also play a major role in determining the direction of inflation.
Data source: National Bureau of Statistics