In­fla­tion rate re­mains un­changed at 4.8 per cent

Swazi Observer - - BUSINESS - By Hlengiwe Ndlovu

THE coun­try’s an­nual con­sumer in­fla­tion re­mained un­changed at 4.8 per cent last month, same as it was the pre­vi­ous month, the Cen­tral Bank has con­firmed.

Food prices con­tin­ued to fall on a year-on-year ba­sis, record­ing a de­fla­tion of 1.3 per cent in from a de­fla­tion of 0.9 per cent in April.

Food items that recorded an­nual de­creases in­cluded ‘ce­real prod­ucts’, ‘oils and fats’, ‘fruits’ and ‘su­gar and con­fec­tionery prod­ucts’.

In ad­di­tion to food, other cat­e­gories that recorded year-on-year de­creases were ‘com­mu­ni­ca­tion’ and ‘cloth­ing, and footwear, which recorded a de­fla­tion of 2.3 and 2.0 per cent, re­spec­tively.

Off­set

The de­creases were off­set by in­creases in the price indices for ‘hous­ing and util­i­ties’ and ‘trans­port’.

The price in­dex for hous­ing and util­i­ties grew by 13.9 per cent in May from 13.3 per cent the pre­vi­ous month.

The in­crease was largely due to 13 .7 per cent in­crease in wa­ter tar­iffs ef­fected in May.

In­crease

Trans­port in­fla­tion, on the other hand, rose by 0.2 of a per­cent­age point to 3.4 per cent in May, largely due to 40 cents per litre in­crease in fuel prices ef­fected in May 2018.

On month-on-month ba­sis, in­fla­tion grew at a lower rate of 0.3 per cent in May com­pared to a sig­nif­i­cant in­crease of 3.6 per cent the pre­vi­ous month.

Notable month-on-month in­creases in May were ob­served in the price indices for ‘hous­ing and util­i­ties’, ‘trans­port’ and ‘cloth­ing and footwear’.

Core in­fla­tion, which is mea­sured as the CPI ex­clud­ing food and non­al­co­holic bev­er­ages, auto-fuel and en­ergy, re­mained el­e­vated, record­ing 7.3 per cent in last month from 7.1 per cent in April.

On month-on-month rates, core in­fla­tion grew mod­estly by 0.4 per cent in May com­pared to the 4.9 per cent growth recorded the pre­vi­ous month.

Newspapers in English

Newspapers from Swaziland

© PressReader. All rights reserved.