South Africa’s annual producer price inflation speeds to 5.7% in March

By bne IntelliNews April 25, 2013

South Africa's annual headline producer price inflation speeded up to 5.7% in March from 5.4% in February, Statistics South Africa said. The main contributors to the March producer inflation were food products, beverages and tobacco products, whose prices rose 5.9% y/y, contributing 2.0pps to the producer price index (PPI). The prices of coke, petroleum, chemical, rubber and plastic products grew by 9.2% y/y, contributing 1.6pps to the PPI, the statistics office elaborated.

On a monthly basis, the headline producer price inflation was 0.9%.

Economists, quoted by BusinessDay, said that March producer price inflation was higher than expected, but should moderate in the coming months, affected by subdued global economic growth and easing commodity prices. Higher electricity prices and weaker rand could, however, put some pressure on producer prices. According to Nedbank economist Johannes Khosa, the higher than expected PPI would not pressure the central bank to hike interest rates, given that consumer price inflation is still within its target range.

As of January 2013, the statistics office releases five separate industry-specific producer price indices (PPI), 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.

The annual change in the PPI for intermediate manufactured goods was 7.7% in March, up from 6% in February. The PPI for electricity and water rose 11.4% in March, slowing from 13% in February. The mining PPI was up 8.6% y/y last month, accelerating from 6.6% in February. The annual PPI for agriculture, forestry and fishing was 0.4% in March, slowing from 1.2% in February.

Related Articles

South Africa’s MTN fears sanctions may hinder profits repatriation from Iran

MTN Group, one of Africa’s biggest mobile operators, has said it will struggle to repatriate profits from its Iranian subsidiary MTN-Irancell if heavy sanctions are reimposed on Iran following ... more

Russia's Rosneft sets foot in Mediterranean with $1.125bn Eni deal

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

PetroSA, Rosgeo sign $400mn oil and gas exploration agreement for South Africa

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