Manuel confirms error in inflation figures

Published May 26, 2003

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There has been an error in the calculation of South Africa's consumer inflation figures, Finance Minister Trevor Manuel confirmed on Tuesday.

The margin of the mistake was not clear as yet but steps were under way to prevent a repetition, he told reporters in Pretoria.

"Clearly there has been, on the part of the Statiscian-General (Pali Lehohla), admission of an error, which needs to be corrected," Manuel said.

"But I don't think we know, as we sit here, what the margin of error is and which elements would be amended by how much."

Statistics South Africa was expected to give more information about the matter at the release of the CPIX on Friday.

The minister met the Statistics Council earlier in the day about Statistics South Africa's decision to delay last week's release of the consumer price index less mortgage costs (CPIX) because of concerns about its accuracy.

Manuel said: "The question we have to ask is how did something like the CPIX slip through the cracks - because it has."

The council acts as custodian of the country's official statistics, advising the minister and Statistics South Africa.

South Africa's system of official statistics needed to be above reproach with a high level of legitimacy.

"It must be seen as the only official voice of statistics," Manuel said.

He said he did not have details of what wrong with the CPIX. Statistics South Africa would give more information on this at the release of the CPIX on Friday. - Sapa

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