Swazi Observer

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INFLATION UNCHANGED

By Hlengiwe Ndlovu | 2018-08-16

THE country’s inflation rate still stands at 4.9 per cent, the same as it was in July last year, the Central Statistics Office states in its Consumer Price Index.

Even though the inflation rate remains unchanged, the Central Bank of Eswatini warned that the recently implemented VAT hike from 14 per cent to 15 per cent would cause serious inflationary pressures on the country.

The lower inflation rate was due to decreasing annual rates of change reflected last month in the price indices for furnishing, household equipment and routine household maintenance which decreased from 2.6 per cent in June 2018 to 2.1 per cent last month.

Tools and equipment for house, garden and household textiles also contributed to the lower index.

Food and non-alcohol beverages which decreased from -0.7 per cent in June to -1.1 per cent last month were also a contributor to the lower index. Vegetables, fish, seafood, oils and fats largely contributed to the decreased index.

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However, the lower inflation rate was also counteracted by increasing rates of growth in the price indices for communication which increased from -2.3 per cent in June to -1.1 last month.

Telephone and telefax services largely contributed to the increased index. Clothing and footwear also increased from -2.4 per cent in June 2018 to -1.6 per cent last month.

Transport increased from 3.8 per cent in June to 4.3 per cent last month. Operation of personal transport equipment, such as fuels and lubricants contributed to the higher index.

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