SA July PPI 3.3% y/y vs 3.7% y/y in June

Producer inflation for final manufactured goods was 3.3% year-on-year in July, decreasing marginally from the 3.7% year-on-year rise recorded in June, Statistics SA data showed.

Economists had expected producer inflation to increase to 3.9% year on year mainly due to the lag effects of the broad-based rise in commodity prices during the second quarter.

From June to July, the producer price index (PPI) for final manufactured goods increased by 0.2%.

The main contributors to the annual rate of 3.3% were food products, beverages and tobacco products; metals, machinery, equipment and computing equipment; and wood and paper products.

Prices in intermediate manufactured goods decreased by 0.3% year on year in July compared with a drop of 0.4% in June.

Electricity and water producer inflation rose to 12.2% year on year from 11.4% in June. From June 2015 to July 2015 the PPI for electricity and water increased by 9.7%.

PPI for mining showed a decrease of 8.7% year on year compared with a decrease of 4.2% in June.

The annual increase in the PPI for agriculture, forestry and fishing was 6.4% in July compared with 4.5% in June.

Source: BDpro