VS 
A storm is brewing between StatsSA and Investec regarding the interest rates & CPI:
"Investec Asset Management, South Africa's second-biggest private money manager, said yesterday [July 15]the May inflation rate of 10.9 percent is overstated by 2.2 percentage points because the statistics office delayed reweighting product categories in the consumer price index by two years. The office today denied that it delayed the process, adding that updating the index had taken longer than in previous years because it was being cautious." Bloomberg Africa
It didn't take StatsSA long to reply to the allegations:
"Recent press reports based on an analysis of consumer price inflation by Investec Asset Management suggest an error in the calculation of the CPI, resulting in an overstatement of the annual inflation rate.
The difference between Stats SA’s official inflation rate and Investec’s estimates arises from the reweighting and rebasing of the CPI to be implemented in 2009. It is important to note that there is no error in Stats SA’s CPI calculations. Any difference in the rate of inflation given the old and new weights is not the result of errors but of a careful and logical process of keeping up with current changes in the economy as far as practically possible.
Reweighting and rebasing in many advanced economies take place with intervals of 3 to 10 years.
In most cases, South Africa included, base-period weights are used in the CPI, which implies that the weights always refer to a previous period and inevitably introduce a measure of bias. While no CPI is free of biases, Stats SA strives to minimise such biases."
Read the whole reply here
"Investec Asset Management, South Africa's second-biggest private money manager, said yesterday [July 15]the May inflation rate of 10.9 percent is overstated by 2.2 percentage points because the statistics office delayed reweighting product categories in the consumer price index by two years. The office today denied that it delayed the process, adding that updating the index had taken longer than in previous years because it was being cautious." Bloomberg Africa
It didn't take StatsSA long to reply to the allegations:
"Recent press reports based on an analysis of consumer price inflation by Investec Asset Management suggest an error in the calculation of the CPI, resulting in an overstatement of the annual inflation rate.
The difference between Stats SA’s official inflation rate and Investec’s estimates arises from the reweighting and rebasing of the CPI to be implemented in 2009. It is important to note that there is no error in Stats SA’s CPI calculations. Any difference in the rate of inflation given the old and new weights is not the result of errors but of a careful and logical process of keeping up with current changes in the economy as far as practically possible.
Reweighting and rebasing in many advanced economies take place with intervals of 3 to 10 years.
In most cases, South Africa included, base-period weights are used in the CPI, which implies that the weights always refer to a previous period and inevitably introduce a measure of bias. While no CPI is free of biases, Stats SA strives to minimise such biases."
Read the whole reply here
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