OWN CORRESPONDENT, Johannesburg | Wednesday 12.45pm
THE all-commodities producer price index rose an annualised 8,2% in January after December’s 7,2% rise, figures released by Statistics South Africa reveal.
Monthly PPI rose 1,2% in January from December after rising 0,5% in December.
A Reuters consensus poll of economists forecast PPI would rise a monthly 0,6% and an annualised 7,5%.
Economist said the rise in PPI is far greater than they expected. Markets, however, seem slow to react to the news as it is holding out for the Budget. Gensec economist Peter Calitz said: “It’s a terrible figure. I think oil is the main culprit. It is much higher than the most pessimistic forecast.
“We have not seen the end of higher crude prices flowing through to PPI [but] I will stick to my assumption that in the second half oil prices will come down. “Clearly this is going to have a negative impact on CPI too. If [Finance Minister Trevor Manuel] today announces a further increase in fuel level…there will be a whopping increase in petrol prices next week.”