INFLATION RATE DROPS AGAIN TO 1.6%

MBABANE – The inflation rate has dropped once again to 1.6 per cent. The Central Statistical Office (CSO) reported that the headline inflation rate in May 2019 (the annual percentage change in the Consumer Price Index (CPI) in May 2019 compared with that of May 2018) for the country was 1.6  per cent.

This annual rate of inflation was 0.2 index points lower than the corresponding annual rate of 1.8 per cent observed in April 2019.

inflation

“The month on month inflation rate (the percentage change in the CPI in May 2019 compared with that of April 2019) is 0.0 per cent,” explained CSO.
 It was pointed out that the lowerheadline inflation was due to decreasing annual rates of change reflected in May in the price indices for housing, electricity, water, gas and other fuels which decreased from 0.9 per cent in April 2019 to 0.3 per cent in May 2019.

Water supply and miscellaneous services related to dwelling largely contributed to the decreased index in this category.
However, it was explained that the decreasing rates were slightly counteracted by increasing rates of growth in the price indices for alcoholic beverages, tobacco and narcotics which increased from 4.1 per cent in April 2019 to 5.1 per cent in May 2019. Alcohol beverages (namely beer) mainly resulted in the increased index.

“Restaurants and hotels which increased from 0.1 per cent in April 2019 to 1.0 per cent in May 2019. Catering services, such as restaurants and cafés contributed to the increased index,” added CSO.

It should be mentioned that Prime Minister Mandvulo Dlamini was ecstatic that the inflation had recently dropped to 1.8 per cent courtesy of  economic reforms implemented by the incoming executive.

convened

 Speaking during the breakfast meeting with editors convened at the Royal Villas a fortnight ago, the PM said it was impressive to note that the inflation had been drastically reducing since they assumed office about six months ago.

He attributed the inflation decline to positive decisions such as the freeze in electricity and water tariffs which lowered the production costs therefore leading to a reduction in prices in general.


“The inflation drop is a result of austerity measures introduced by government with good intentions to improve the local economy for the better,” said Dlamini.

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