Advertise with

Production prices were up slightly in May in line with economists’ expectations.
Production prices were up slightly in May in line with economists’ expectations.

Food, beverages and tobacco largest contributor to May’s PPI increase


By Sunita Menon - Jun 29th 2017, 14:49

Production prices were up slightly in May in line with economists’ expectations. 

The annual percentage change in the production price index (PPI) for final manufactured goods was 4.8% in May 2017, compared with 4.6% in April 2017. From March 2017 to April 2017, the PPI for final manufactured goods increased 0.5%.

The main contributors to the annual rate of were food products, beverages and tobacco products (1.9 percentage points) and coke, petroleum, chemical, rubber and plastic products (1.6 percentage points).

At 25.17%, the food category makes up the largest portion of PPI.

Investec economist Kamilla Kaplan said last week that inflation would lift marginally "with some upward pressure arising from the fuel price component. The May PPI update is also likely to reflect ongoing manufactured food price disinflation and deflation at the agricultural level."
© BusinessLIVE MMXVII 

Read more about: sa economy | production | ppi

Related News

SA expected to sow fewer maize hectares than in previous seasons
26/11/2019 - 10:06
South African farmers are expected to sow 2.8% fewer hectares of the food staple maize next season than forecast in October after the planting season was delayed by rains, a Reuters survey of analysts showed.

The clever shift SA's economy can make: economist
13/11/2019 - 13:29
Finance minister Tito Mboweni’s medium-term budget gave a blunt presentation of the financial issues facing South Africa and it is clear that government has finally come to grips with reality, says Efficient Group economist Francois Stofberg.

Billions in investments flow in to improve SA's economy
13/11/2019 - 11:30
More businesses have pledged billions of rands in investment to the ailing South African economy at the second investment conference in Sandton.

Black Friday hype begins as retailers test shoppers with 'teasers'
06/11/2019 - 09:15
Retailers’ gloves are off in the battle to gain market share ahead of Black Friday, with several deals already being unveiled to attract customers.

Manufacturing sentiment improved in October
05/11/2019 - 12:52
Manufacturing activity recovered in October, improving on the previous month’s revised figures and beating market expectations.