South Africa Updates Consumer Inflation Basket, Adds 71 Items

South Africa's statistics agency has updated its consumer inflation basket for the first time since 2022, reflecting changes in consumer spending habits. The revision includes the addition of 71 new items such as rosé wine, air fryers, gas cylinders, streaming services, and school uniforms, while removing 53 items like frozen potato chips and ground coffee, resulting in a total of 391 items in the basket. Chief Director of Price Statistics Patrick Kelly noted that these changes will allow for better tracking of education inflation separately for private and public schools. The update is based on insights from a recent household income and expenditure survey, which revealed a decline in average household income and significant racial disparities in spending. Despite the changes, experts predict a muted overall impact on headline inflation. The new inflation data will be reported on February 19, with December 2024 set as the reference period.