Inflation increases to 4.33%

THE country’s headline inflation has increased slightly to 4.33% in June from 4.05% observed in May.

Data released by the Central Statistical Office states that the slight increase was due to annual rates of change reflected in, among others, housing, water, electricity, gas and other fuels which increased from 10.66% in May to 11.01% in June as well as alcoholic beverages and tobacco which increased from 6.75% in May to 7.55% in June while recreation and culture increased from 12.38% in May to 12.88 % in June.
These increases were counteracted by decreasing rates of growth in the price indices for food and non-alcoholic beverages which decreased from -1.77% in May to -2.10% in June while clothing and footwear decreased from 9.41% in May to 9.20% in June and health decreased from 2.14% in May to 1.32% in June.
Last week, Central Bank of Swaziland (CBS) Governor Martin Dlamini said future inflation prospects indicated that the downward trend in food inflation which has been the major driver to overall inflation in the country, due to its greater weight in the basket, was expected to continue in the medium term.
However, he said inflationary pressures were expected to persist on both transport as well as housing and utilities indices due to the upward adjustment to fuel prices between April and May, and the 9% increase in water tariffs in June whilst a 25% increase in electricity tariffs has been applied for.
He said since fuel and electricity were input costs they may result in prices picking up on the other components in the basket, notably food.

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