|Unit||Index Dec2016=100, NSA|
|Adjustments||Not Seasonally Adjusted|
The CPI shows the average price level of all those goods and services (a fixed basket of goods and services) bought by a typical consumer or household in South Africa changes over time. The consumer goods and services data is classified by the International Trade Classification and the COICOP(SNA 1993) classifications.
There are four main consumer price indexes: Consumer Price Index (Full CPI basket), Core CPI (excluding fresh and frozen meat and fish, vegetables, fruit and nuts; interest rates on mortgage bonds; changes in VAT; and assessment rates), CPIX (excluding interest rates on mortgage bonds), and CPI excluding VAT
The index base period is December 2016 = 100. The current basket includes 412 products and serivces. This is an increase from the previous basket which consisted of 396 products and services. The basket serves as a basis for how the monthly CPI is calculated.
There are two data collection groupings. The first is the field collection which collects prices of commodities, taxi fares, rentals, and restaurants at a monthly frequency. This group uses persons employed in taking part of the survey to collect the data. The second group is the head office collection which collects prices of commodities and services. The collection methods used are postal, e-mail, fax, telephonic, and the internet.
Prices are collected for different types of areas including urban and rural areas. The CPI collects and publishes for all areas in which prices are collected. The reported geographies include the total country, all urban areas, and the nine provinces.
Each product included in the basket carries a weight that is determined by the proportion of household spending. Each weight controls the corresponding product's relative importance. The CPI uses a plutocratic weighting scheme that reflects the total expenditures of all reference households and estimated total values of the reference population. The Income and Expenditure Survey (IES) is used to derive the levels of expenditure for households during a certain time frame. A full list of the 2016 weights are available on the source's website.
The weights are updated in 5 year intervals and are linked to the availablility to the IES data. Data is subject to revisions.