Advertise with

Annual producer price inflation remains on a five-month easing streak.
Annual producer price inflation remains on a five-month easing streak.

Producer inflation decelerates in August


By Lynley Donnelly - Oct 1st, 11:02

Producer inflation continued to slow in August, reaching 4.5% year on year, down from July’s 4.9%, Statistics SA said. 

This continues a five-month easing streak, coming in slightly below a Bloomberg survey of economists that had expected it to reach 4.6%.

Producer inflation — as measured by the producer price index — records the change in prices of goods and services sold by manufacturers and producers.

Month on month, producer price inflation grew 0.3%, according to the agency.

The main contributors to the annual inflation rate were food products, beverages, and tobacco products, which grew 4.6% year on year; the metals, machinery, equipment and computing equipment segment, which grew an annual 5.4%; coke, petroleum, chemical, rubber and plastic products, which rose 3.3%; and paper and printed products, which increased 7.8%.

Economists had expected the slowdown in producer inflation to continue, in part thanks to statistical base effects relating to the petrol price, which rose sharply in 2018.

The slowdown comes a week after consumer price inflation rose 4.3% year on year in August, a slight uptick on the previous month.

Business Live 

Read more about: stats sa | producer inflation | economy

Related News

SA on track for third year of moderating inflation
25/11/2019 - 09:41
SA’s largest asset manager Investec says SA is likely to see average inflation of 4.5% in 2020, with price pressure consistently moderating since 2016.

How a US-China trade deal could benefit SA
11/11/2019 - 09:53
Africa is poised to become the “land of opportunity” for bond and equity investors should the US and China strike a trade deal, Bank of America (BofA) says.

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.

Local retailers are outperforming a bad economy
31/10/2019 - 08:49
South African retailers have been battered by poor trading conditions, rising job losses and weak economic growth, which has made it difficult for companies to pass on costs to their customers.

Inflation slows in September
23/10/2019 - 13:38
Inflation moderated to an annualised 4.1% in September, surprising analysts, and boosting the expectation that SA’s embattled consumers may get another interest rate cut in 2019.