Advertise with fastmoving.co.za
 
 

Producer price inflation rises
Producer price inflation rises

Rise in factory gate prices eases

ECONOMIC NEWS

Fin24 - May 26th 2011, 08:03

Johannesburg - Producer price inflation - or the increase in factory gate prices - slowed to 6.6% year-on-year (y/y) in April, from 7.3% in March, Statistics SA said on Thursday.  

"This rate is 0.7 of percentage point lower than the corresponding annual rate of +7.3% in March 2011," Stats SA said in a report.

Producer price inflation (PPI) measures the average changes in prices received by domestic producers for their output. From March 2011 to April 2011, the PPI for domestic output increased by 0.9%.

The lower annual rate in April was driven by decreases in mining and quarrying, basic metals, other manufacturers, beverages, and non-metallic mineral products.These decreases were partially counteracted by increases in the annual rate of change for electricity, products of petroleum and coal, and metal products.

Razia Khan, head of research Africa, Standard Chartered, cautioned "against reading too much into this figure".

"A lot of the good news was the favourable base; 0.9% month-on-month is still a pretty hefty rise, and provides little reason to go complacent on inflation risks," she said.

Consumer inflation edged up slightly to 4.2% y/y in April compared with March, coming in below market expectations, data showed last week.

The Reserve Bank raised its inflation forecast earlier this month and said CPI inflation was likely to pierce its 3% to 6% target band briefly, peaking at 6.3% in the first quarter of 2012, and said it would not hesitate to act on signs that inflation was consistently above the target band.

The central bank has left its repo rate unchanged at 5.5% this year, after reducing it by 650 basis points between December 2008 and December 2010.  

Related News

Manufacturing production shrinks for second month in July
11/09/2019 - 13:01
Manufacturing production recorded its second consecutive contraction in July, in line with analysts’ expectations.

Multi-million rand Rustenburg Mall underway
09/09/2019 - 11:07
Rustenburg shoppers can look forward to a brand new shopping centre – Rustenburg Mall – set to introduce its first phase in April 2021.

Introducing the Cape Fine and Rare Wine Auction
23/08/2019 - 10:07
With the world market increasingly focused on the fine and rare wines from South Africa, the Cape Winelands is in a stronger position than ever to showcase its fine wine investments. This year, the Cape Winelands is proud to host its first-ever Cape Fine & Rare Wine Auction, an evolution of the historic Nederburg Auction in 1975.

Boost for SA's economy as China lifts its beef ban
07/08/2019 - 09:10
Within one month of the meeting between President Cyril Ramaphosa and President Xi Jinping at the G20, China has announced that it is lifting the ban on South African beef exports to China. This will be a major boost to South Africa’s economy given that China is the largest consuming market for South African beef and related products.

South Africa’s economy ‘doesn’t have a long time’
02/08/2019 - 12:57
South Africa’s outlook has been dealt several heavy blows following Eskom’s financial results, and the latest unemployment data, which has raised the question: where to from here?