SARAH BULLEN, Cape Town | Tuesday 4.00pm
PRODUCER inflation, measured as the rate of change in the Production Price Index (PPI), showed an annual rate of increase of 6,2% for July, Statistics South Africa said on Tuesday.
This is 0,2 of a percentage point lower than Junes’s annualised rate of 6,4%. Prices, however, rose by 0,9% during the month. Seasonally adjusted prices also increased by 0,8%.
As expected, the ongoing increases in the international oil price as well as the upward movement in the domestic petroleum price continued to be major push factors for PPI.
ING Barings chief economist Kristina Quattek said that in July the domestic petrol price actually stayed constant — but it must have been the previous months’ increases that fed through.
“Looking ahead August saw a 1c/l petrol price rise and for September a 13c/l increase has been announced. Combined with a jump of the international price of brent to around $21/barrel by the end of August, the petrol price will continue to put upward pressure on PPI.
SSA said the annual increase of 6,2% in the PPI for commodities for South African consumption was due to annual increases in the price indices for locally produced commodities and imported commodities. The annual rate of increase for the PPI for locally produced commodities for consumption in South Africa was 6% in July 1999 which, SSA said, was 0,5 of a percentage point higher than the corresponding annual rate of 5,5% during June 1999.