|
Blog: 14 February 2017 (CPI 2016 Weights Wheel)
|
Related Topics |
|
In today's blog we take a look at South Africa's 2016 CPI weights on a interactive wheel chart. It provides a high level breakdown of South Africa's consumer spending categories. It provides lower level data and information for each of the expenditure categories. From the graphic it is clear that the major spending categories for South African consumers are Food, Housing and Transport.
|
CPI weights wheel
Below the graphic showing the major expenditure categories as well as the percentage of total consumer expenditure going towards each spending category. As users scroll over the chart lower level details on the categories are available, showing exactly what makes up the different expenditure categories. For example under Food and Non-Alcoholic beverages group, there is a split for portion spent on Food and the portion spent on non-alcoholic beverages.
As the wheel shows large proportions of consumer's spending is focused on Food, Housing, Transport and Miscellaneous (this is largely made up by Insurance and Banking fees).
Food was the single biggest expenditure item for South African consumers with South African's spending R15.50 out of every R100 they spend on Food. The second biggest expenditure item is Owners Equivalent Rent (OER) making up R13.30 for every R100 spent. This is the opportunity cost of people staying in their own homes instead of renting their homes out. As using the bond repayments as cost item is methodologically incorrect as that prices the cost of debt and not the cost of housing.
Other large expenditure items include Insurance at R10.10 out of every R100 spent. Insurance in this case includes health insurance/medical ads, car insurance, household content and building insurance).
Purchase of vehicles (both new and used) accounted for R6.10 spent out of every R100 spent by South African consumers, while personal vehicle operations (fuel, services, parts etc) made up R5.90 out of every R100 spent by South African consumers.
And then the "sin" spending that the Finance Minister likes going after with "sin taxes" included the following:
Alcoholic beverages : R3.90 out of every R100 spent by South Africans
Tobacco (this includes pipe tobacco, cigarettes etc): R1.90 out of every R100 spent by South Africans
Gambling (part of recreational and cultural services): R1.75 out of every R100 spent by South Africans
It's clear that South Africans spend their money on a wide variety of items, but the inflation basket as represented by this inflation weights wheel shows that there are 4 to 5 major items that will in all likelihood be the main drivers of inflation in future. And they are Food, Vehicles, Fuels, OER, Insurance, Electricity
Other large expenditure items include Insurance at R10.10 out of every R100 spent. Insurance in this case includes health insurance/medical ads, car insurance, household content and building insurance).
Purchase of vehicles (both new and used) accounted for R6.10 spent out of every R100 spent by South African consumers, while personal vehicle operations (fuel, services, parts etc) made up R5.90 out of every R100 spent by South African consumers.
And then the "sin" spending that the Finance Minister likes going after with "sin taxes" included the following:
Alcoholic beverages : R3.90 out of every R100 spent by South Africans
Tobacco (this includes pipe tobacco, cigarettes etc): R1.90 out of every R100 spent by South Africans
Gambling (part of recreational and cultural services): R1.75 out of every R100 spent by South Africans
It's clear that South Africans spend their money on a wide variety of items, but the inflation basket as represented by this inflation weights wheel shows that there are 4 to 5 major items that will in all likelihood be the main drivers of inflation in future. And they are Food, Vehicles, Fuels, OER, Insurance, Electricity