Producer prices are expected to have risen by 1,5% in January, lifting the annual PPI rate to 9,0%, SCMB Securities said on Tuesday. The official rate will be released in Pretoria on Wednesday. Pressure from the domestic component is likely to have grown. Agriculture and food at manufacturing were expected to have been key drivers of the monthly increase, following their milder contribution to the overall index in December. Other categories from which some upward pressure was expected were paper and paper products, chemicals and chemical products and utilities (electricity, gas and water). The PPI figure will be telling of what can be expected on the consumer inflation front. The impact of PPI on CPI occurs with a lag of approximately six months. – Sapa