LAST YEAR saw the inflation rate fall to its lowest level since 1969, according to the latest consumer price index (CPI) analysis from Standard Bank. The average annual inflation rate for 1999 was 5.2% - a sharp improvement on the 6.9% of 1998 and 8.6% of 1997, and matching the '69 rate of inflation.
This average is calculated from the monthly figures used for two measures - the recently-introduced core CPI index and the headline CPI index.
Core is from a basket of items which excludes mortgage interest rates, assessment rates, VAT and certain fresh and frozen food items - all excluded to smooth out volatility in price changes.
The core CPI - which has been increasing in recent months due to rising oil prices - actually fell in December, from 8.1% to 7.9%. This, according to the Standard, was helped along by December's 1 cent/litre reduction in petrol prices - with the more recent 2c/l increase only expected to impact on inflation in the January 2000 figures.
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