Africa-Press – Eswatini. Eswatini inflation slowed in November, thanks to cooling fuel prices which overpowered still-rising food costs.
Headline consumer inflation fell to 4.7 per cent year on year in November from 5.0 per cent in October. This is according to data from the Central Statistics Office (CSO) published on Friday. Headline inflation, is a measure of the total inflation within an economy, including commodities such as food and energy prices (e.g., oil and gas), which tend to be much more volatile and prone to inflationary spikes.
Equipment
The lower headline inflation, was due to decreasing annual rates of change reflected in November in the price indices for: furnishing, household equipment and routine household maintenance, which decreased from 6.0 per cent in October 2023 to 4.1 per cent in November 2023. Household textiles, non-durable household goods and small tools and accessories; mainly contributed to the lower index in this category.
Food and non-alcoholic beverages, decreased from 10.2 per cent in October 2023 to 8.2 per cent in November 2023, Bread and cereals: Mineral waters, soft drinks, fruit and vegetable juices, and fruits and vegetables; mainly contributed to the lower index in this category. Transport, decreased from 0.3 per cent in October 2023 to 0.0 per cent in November 2023. Fuels and lubricants contributed to the lower index in this category.Earlier this month, the price of Diesel 50 ppm S decreased by 80 cents per litre, the price of Illuminating Paraffin decreased by 50 cents per litre whilst the price of Unleaded Petrol 95 (ULP 95) remained unchanged.
As such, Diesel 50 ppm S cost E22.60 per litre while Unleaded Petrol (ULP 95) cost E20.80 per litre. The decreasing rates were counteracted by increasing rates of growth in the price indices for; recreation and culture, which increased from 3.3 per cent in October 2023 to 5.5 per cent in November 2023. Magazines, pets and related products, mainly contributed to the higher index in this category. Clothing and footwear, increased from 4.6 per cent in October 2023 to 6.0 per cent in November 2023. Garments and shoes contributed to the higher index in this category.
Inflation
November’s headline reading remains within the Central Bank of Eswatini’s inflation target range of four to five per cent. At the bank’s last policy meeting in November, CBE Governor Dr Phil Mnisi said the bank marginally reviewed up its inflation forecasts to 5.04 per cent (from 4.93 per cent) for 2023 and 4.99 per cent (from 4.68 per cent) for 2024. He said risks to the inflation outlook, included elevated crude oil prices, the weaker exchange rate and higher food prices, among others.
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