The rebasing and reweighting of the CPI will affect the inflation measure.
The GSS has indicated that the Food component of the CPI will have a reduced weight while other sectoral components will have increased weights, re ... read full comment
The rebasing and reweighting of the CPI will affect the inflation measure.
The GSS has indicated that the Food component of the CPI will have a reduced weight while other sectoral components will have increased weights, reflecting more accurately average household expenditure patterns in the past year. The food component has helped keep the inflation measure low as food inflation has been relatively low over the past two years.
Whether the new series indicates lower or higher overall inflation depends on the level of inflation the sectoral components. What is certain is that food inflation will have less influence on the overall inflation, with inflation in the other sectoral components reflecting more strongly in overall inflation.
All told, it is of prime importance that the GSS continues to produce reliable and accurate statistics as the basis for policy decisions on national development.
The rebasing and reweighting of the CPI will affect the inflation measure.
The GSS has indicated that the Food component of the CPI will have a reduced weight while other sectoral components will have increased weights, re ...
read full comment