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Ever wondered what the inflation rate of pensioners are? And if the inflation rate experienced by pensioners is vastly different to the overall inflation rate experienced by South Africans? Well we take a look at the latest inflation numbers released by Statistics South Africa and focus on the inflation rate of pensioners.
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Pensioners inflation vs Headline inflation
The line chart below shows the year on year inflation rate for pensioners and the headline inflation rate (official inflation rate of South Africa) over the last two years, as published by Statistics South Africa.
So the above shows that while there is some variation on the inflation rate measured for pensioners to that of the official inflation rate, the trends and overall levels are very similar. The average inflation rate over the last two years, for both pensioners and official inflation rate is shown below:
Worrying for pensioners though would be the fact that over the last two months their inflation rate has been higher than the official inflation rate, and they would sure be hoping that this trend doesn't continue, as inflation erodes pensioners buying powers and they cannot work any more to supplement their income from say grants/ pension payouts, which at best increases at the rate of inflation each year. So if their inflation is higher than the official inflation rate, pensioners tend to lose out as pension pay outs do not increase by pensioners inflation but by the official inflation rate.
For more on the latest inflation numbers see our inflation heat map
- Pensioners: 4.938%
- Official: 4.880%
Worrying for pensioners though would be the fact that over the last two months their inflation rate has been higher than the official inflation rate, and they would sure be hoping that this trend doesn't continue, as inflation erodes pensioners buying powers and they cannot work any more to supplement their income from say grants/ pension payouts, which at best increases at the rate of inflation each year. So if their inflation is higher than the official inflation rate, pensioners tend to lose out as pension pay outs do not increase by pensioners inflation but by the official inflation rate.
For more on the latest inflation numbers see our inflation heat map