SA April PPI 3% y/y vs March 3.1% y/y

Producer inflation for final manufactured goods decelerated slightly to 3% year on year in April from 3.1% in March‚ Statistics SA data showed on Thursday, 28 May 2015. From March to April‚ the PPI for final manufactured goods increased by 0.9%.

The main contributors to the annual rate of 3% were food products‚ beverages and tobacco products‚ contributing 1.8 percentage points; and metals‚ machinery‚ equipment and computing equipment‚ contributing 1 percentage point.

The latest data could suggest that the effects of a weak rand have not yet been fully felt in domestic prices.

The main contributor to the monthly increase of 0.9% was coke‚ petroleum‚ chemical‚ rubber and plastic products.

The producer inflation for intermediate manufactured goods was -0.2% in April compared with 0.9% in March. The main reasons behind the -0.2% was chemicals‚ rubber and plastic products which fell -2.2% year-on-year.

The producer inflation for electricity and water was 10.4% in April compared with 8.6% in March. Both electricity and water costs are set to increase further from July.

The producer inflation for mining was -4.7% in April compared with -4.4% in March.

The producer inflation for agriculture‚ forestry and fishing was 4.5% in April compared with -1% in March 2015.

Source: BDpro via I-Net Bridge