“This rate is 1.9 percentage points higher than the corresponding annual rate of -1.2% in November,” said Stats SA on Thursday, 28 January 2010.
The higher annual rate came as a result of increases in the annual rate of change in the Producer Price Indices for mining and quarrying; and products of petroleum and coal.
Standard Bank economist Danelee van Wyk said the data came in higher than expected.
“It came in higher than market expectation but it shows that the periods of deflation are coming to an end. We don't see prices falling again,” she said.
Market consensus was that it would come in at 0.4 percent month-on-month.
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