Africa-Press – Eswatini. The Consumer Price Index for May has indicated that transport (1.36 per cent), food and non-alcoholic beverages (1.1 per cent) as well as the housing and utilities (0.9 per cent) categories respectively contributed significantly to the headline inflation rate of 3.9 per cent.
According to the Director of Statistics, Amos Zwane this means that out of the 3.9 per cent inflation rate, 3.3 per cent was contributed by the above named categories.
Zwane said for over half a century, the Central Statistical Office (CSO) had been compiling the Consumer Price Index (CPI) for the country. He explained that the CPI was an economic indicator which was primarily used to calculate national inflation rate figures as well as the Harmonised Consumer Price Indices (HCPI) for both COMESA and the SADC regions.
“Apart from monitoring a country’s economic performance, the CPI has been mainly used for deflating national accounts, inflation targeting and forecasting and proxy for wages and salary adjustments, among others,” Zwane stated.
According to the report released by Zwane’s office, the headline inflation rate in May (such as the annual percentage change in the CPl in May compared with that of May 2021) for the country is 3.9 per cent.
This annual rate is 0.1 per centage points lower than the corresponding annual rate of 4.0 per cent observed in April .
It is mentioned that the month on month inflation rate (such as the per centage change in the CPI in May compared with that of April) is -0.1 per cent.
The lower headline inflation according to Zwane was due to decreasing annual rates of change reflected in May in the price indices for; furnishing, household equipment and routine household maintenance which decreased from 4.5 per cent in April to -1.2 per cent in May.Zwane in the report further stated that major household appliances, domestic and household services, mainly resulted to the lower index in this category.
According to the report miscellaneous goods and services decreased from 3.2 per cent in April to one per cent in May.
“This is due to notable rates of price decreases in other appliances, articles and products for personal care; other financial services and electrical appliances for personal care, resulting to the lower index in this category,” the report read.
The report further states that alcoholic beverages, tobacco and narcotics decreased from 2.6 per cent in April to 1.0 per cent in May.
This decrease, the report stated was due to lower prices recorded in wine and tobacco, resulting to a lower index in this category.
“The decreasing rates were slightly counteracted by increasing rates of growth in the price indices for: Health which increased from 0.7 per cent in April to 22.2 per cent in May.
The increase is due to higher prices recorded in outpatient services (medical services), resulting in a higher index in this category,” the report read.
It is mentioned that clothing and footwear increased from 3.0 per cent in April to 3.8 per cent in May.
This, according to the report, was due to higher prices recorded in shoes and garments, contributing to the higher index in this category. It was mentioned that restaurants and hotels increased from 0.2 per cent in April to 0.8 per cent in May.
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