Impact of the rebasing and re-weighting of the Consumer Price Index (cpi) on inflation-linked government bonds

The National Treasury has assessed the impact of rebasing and re-weighting the CPI, and the changes that will need to be made to the Government’s inflation-linked bonds. On the 16th February 2022, Statistics South Africa provided the historic data of the rebased CPI (with Dec 2021 = 100) from December 2021 backwards.

The National Treasury has replaced the existing index data for calculation purposes with the new rebased data until December 2021, and further with the new rebased and re-weighed CPI from January 2022.

Calculated on the original respective issue dates, the new base inflation indices are as follows (15 digits apply):

• R197 – 33.1501370909466

• I2025 – 62.5024695408588

• R210 – 45.4951597843470

• I2029 – 78.1513052759275

• I2033 – 73.3170965571644

• R202 – 39.1493204312236

• I2038 – 62.5024695408588

• I2046 – 66.3146796194299

• I2050 – 62.5600058085514

These base indices are calculated in such a way that the capital value of the bonds is the same before and after the indices were rebased.

Source: Government of South Africa