The biggest driver of the headline figure was the food‚ beverages and tobacco products category which was up 6.1% on a yearly basis and contributed 2.1 percentage points to overall growth. Coke‚ petroleum‚ chemical‚ rubber and plastic products added 1.3 percentage points.
On a monthly basis‚ headline inflation increased by 0.4 %. The food‚ beverages and tobacco products‚ textile‚ clothing and footwear‚ coke‚ petroleum‚ chemical‚ rubber and plastic products and metals‚ machinery‚ equipment and computing equipment categories contributed 0.1 percentage points each to the monthly number.
Investec economist Annabel Bishop said the stabilisation in the oil price and the rand for the period limited price growth in the petroleum category. In September‚ growth in the rand price of oil moderated to a yearly 15.5% from nearly 30% in June.
She said she expected consumer inflation to remain at the upper end of the 3% to 6% CPI target band set by the Reserve Bank. "With demand led price pressures remaining absent‚ the Bank will likely keep interest rates where they are‚" she said.
PPI measures inflation at the factory gate in contrast to the consumer price index (CPI)‚ which measures inflation at the retail level. PPI is an indicators for consumer inflation with higher producer prices having a direct bearing on consumer prices.
PPI is influenced by the rand‚ with a weaker rand pushing up importer prices‚ notably oil.
Nedbank's analysts said producer inflation was likely to remain elevated in the months ahead. "The major risk to the outlook remains the rand‚ which has bounced back from recent lows‚ but remains volatile," Nedbank said.
Higher oil and food prices would add upward pressure on producer prices over the next few months. However‚ these pressures would partly be contained by some moderation in prices of certain commodities because of subdued global demand‚ Nedbank said.
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