Journal of Engineering and Applied Sciences
ISSN: Online 1818-7803ISSN: Print 1816-949x
Abstract
The study applied statistical methods to obtain the relationship between the petrol priceand inflation. Since the prices of petrol 93 and petrol 95 differ, separate relationships were sought. In determining the relationship between petrol price and inflation, a time series model for the petrol price and inflation was developed. The study used secondary data sourced from the Department of Energy, South Africa. The data for petrol price was obtained from the published report that is from the Department of Energy and Statistics South Africa (Stats SA) while for inflation data, stats SA provided them. The Pearson’s correlation coefficient was used to measure the strength of the statistical association between petrol and inflation. For petrol 93 and 95, the correlation coefficients were found to be 0.055 and 0.059. This means that a weak but positive relationship between inflation and petrol price was found. Based on the study it is concluded that inflation has a minor impact on the petrol price.
How to cite this article:
Tebogo Kgantshi Branden Moremi, Gomolemo Rakale, Eunice Lebogang Sesale and Solly Matshonisa Seeletse. Statistical Relationship of Petrol Price and Inflation in South Africa.
DOI: https://doi.org/10.36478/jeasci.2020.1759.1763
URL: https://www.makhillpublications.co/view-article/1816-949x/jeasci.2020.1759.1763