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The CPI statistical release for January 2022, to be released on 16 February 2022, will be compiled using an updated basket of goods and services and corresponding weights. In addition, the indices will be rebased so that December 2021 = 100. 

Statistics South Africa announced the changes to the Consumer Price Index (CPI) weights and basket of goods and services today. International standards require the CPI basket to be updated at least every five years to ensure that the inflation measurement reflects changes in consumer expenditure patterns. The CPI weights and basket were last updated in January 2017. The reference period for the new weights is 2019. 

The weights, which represent proportions of consumer expenditure, were adjusted using growth in household spending as measured in the estimates of national accounts. This is the first time that Stats SA has fully relied on national accounts data for recalibrating the CPI weights. In line with international standards, the weights are usually based on spending data from a household expenditure survey such as the Income and expenditure survey and the Living conditions survey (LCS) that informed the last update in 2017. Due to budget cuts, Stats SA was not allocated funding to conduct a household expenditure survey since the 2014/15 LCS. However, the sources and methods used to update the basket and weights are nevertheless consistent with international good practice. 

The previous weights, referencing December 2016, were adjusted with growth rates to 2019. This year was selected as it is the most recent period prior to the COVID-19 induced economic disruptions and for which the national accounts information will not be substantially revised. 

Applying growth rates results in only small changes to the CPI weights for each of the main product groups. Alcoholic beverages and tobacco saw the largest weight increase, rising by 0,44 of a percentage point to 6,26%. The weight for Miscellaneous goods and services experienced the biggest drop, decreasing by 0,24 of a percentage point to 14,81%. 

The number of items in the CPI basket was increased from 404 to 415. A total of 14 products were added to the basket and two products were removed. Some products were combined or split for operational reasons. Basket changes were informed by detailed sales data sourced from retail chains. 

Additions to the food basket include samp, dairy/fruit juice blends, jam, pureed baby food, and cappuccino sachets. Other new products include gin, soundbars and speakers, printer cartridges, printer paper, floor and wall tiles, fabric softener, wipes, make up (foundation) and razors. DVD players and satellite dishes were removed from the basket. 

All of the indices in the CPI will be rebased to 100 at December 2021. Rebasing ensures that the impact of new weights and products on inflation is not distorted by differences in index levels that have accumulated since the previous rebasing. 

Issued by Stats SA