The Namibian Statistics Agency (NSA) launched today its new revised Consumer Price Index (CPI).
CPI measures the changes in the cost of a fixed and preventative basket of goods and services.
NSA Statistician General John Steytler said the new index provides a better presentation of the spending patterns of the citizens and the experience of inflation.
He said, “The current CPI reflects the expenditure patterns of Namibian citizens in 1993/94 and hence does not mirror the significant shifts in patterns of expenditures that have taken place since then, thus the need to be updated. The availability of expenditure data from the 2009/ 10 household Income and Expenditure Survey (NHIES) has provided the NSA with the opportunity to compile an index that is more typical of current consumer spending.”
While the previous CPI showed that a greater proportion of household spending more on food (30%) in 1993, followed by housing and associated cost (20%), the new CPI shows that a greater proportion is spent on housing and cost ( 29%), alcoholic beverages (12,59%) and telecommunication which used to get only 0,9% has increased tremendously to 3,8%.
Some new items were added on the new CPI such as sportswear, garden and patio furniture as well as motor cycles.
The new CPI has also singled out some methodological deficiencies and errors on the previously published index.
Steytler however said there has not been much of an impact on the average inflation.
“The revisions to inflation rates are not indicative or any systematic bias in the inflation figures previously published.”
CPI involves weighing together aggregated prices for different categories of goods and services so that each takes an appropriate share to reflect the budgets of the households covered by the index.