What impacts our property investments and purchasing power and why should we be investing sooner rather than later in a roof over our heads?
Harcourts takes us through one of the main contributing factors.
- Inflation rate is the rate that prices increase on average in a country
- The general ‘basket’ is determined by the Government
- General does not mean it is relevant to each and every person. This basket was compiled in 2017 and consist out 400 items and has not been updated since
- In SA the basket is used to calculate the CPI (consumer price index) representing the average spending of the consumers in SA
- The inflation rate is calculated by taking the items in the basket that consists out of the 400 goods and services over a 12 month period and to compare y/y to calculate the average increase in price.