On Wednesday last week, Statistics South Africa (StatsSA) released the June consumer price index numbers. Headline inflation surprised the market by only increasing 5.5% year-on-year. Analysts are talking about monetary policy remaining looser for longer, while estate agents are sharpening their smiles. Some economists agree with the inflation-targeting policy and framework, others vehemently oppose it. What should be beyond debate is that the CPI 'basket' only has relevance to the richest 10% (or maybe 20%) of households. By PAUL BERKOWITZ.
The graph below represents the official inflation rate, from January 2009 to June 2013, derived from StatsSA's headline CPI figures. The shaded band refers to the Reserve Bank's inflation target of between 3% and 6%.
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