South Africa's annual headline producer price inflation surprisingly eased to 3.0% in April from 3.1% in March, data released by Statistics South Africa showed. Economists expected the PPI inflation to accelerate to 3.4% last month, according to a Business Day survey.
Compared to the previous month, factory prices rose 0.9% in April, slowing from a 1.8% growth in March.
The main contributor to the annual headline producer inflation last month again was the group of foods, beverages and tobacco products with a 5.4% y/y growth and a 1.8pp contribution to the PPI, (+6.0% y/y, 2.0pp contribution in March).
On the other hand, deflation in the group of coke, petroleum, chemical, rubber and plastic products, softened to 7.5% y/y from 9.3% y/y in March. The group contributed -1.6pp to the overall price development versus -2.0pp in March.
Producer prices are a key preliminary indicator for the dynamics in consumer price inflation, which quickened to 4.5% y/y in April from 4% in March.
As of January 2013, Statistics South Africa releases five separate industry-specific PPIs, with final manufactured goods representing the headline number. The other four PPIs cover agriculture, forestry and fishing; mining and quarrying; electricity and water; and intermediate manufactured goods (see the table below).
|Producer price inflation||Apr-15||Mar-15||Apr-15||Mar-15|
|Final manufactured goods||3.0%||3.1%||0.9%||1.8%|
|Intermediate manufactured goods||-0.2%||0.9%||-0.7%||0.3%|
|Electricity and water||10.4%||8.6%||4.7%||-1.2%|
|Agriculture, forestry and fishing||4.5%||-1.0%||1.7%||1.5%|
|Source: Statistics South Africa|
Russia's largest oil producer state-controlled Rosneft has acquired 30% in the largest natural gas field in the Mediterranean from Italian Eni, the company announced on October 9. Rosneft that ... more
South Africa's national oil company PetroSA and Rosgeo, the geological exploration company of the Russian Federation, have signed an agreement on a $400mn oil and gas development project in South ... more
South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more