South Africa’s Solidarity trade union has questioned the validity of April’s official inflation data, calling it “a hoax”, following sharp downward revisions made in the calculations by government agency Statistics South Africa (Stats SA).
Stats SA on Friday announced a decline in the April CPIX (consumer headline inflation less mortgage rates), used by the South African Reserve Bank for inflation targeting purposes, to 8,5% in April from a revised 9,3% (11,2%) in March.
Adam Jacobs, economics advisor for Solidarity, commented: “Considering the rent component of the CPIX inflation measurement is a mere 4,39% of the index, it is highly unlikely that a decline of this magnitude can logically be explained. Solidarity rejects the latest figure and the mistrust and distrust in the ability of the CSS (the previous name of Stats SA) to turn out reliable statistics is now larger than before.
“Solidarity therefore cannot but reiterate its request for an independent commission of inquiry to investigate the whole process of statistics gathering, processing and presentation at all levels and in all departments and other related bodies.” – I-Net Bridge