/ 26 February 2004

January producer price inflation higher

Year-on-year producer price inflation for all commodities for South African consumption (PPI) came in higher at -1,4% last month compared with -1.8% in December 2003, Statistics SA (Stats SA) reported on Thursday.

This could be explained by increases in the annual rates of change in the production price indices for petroleum and coal products, agricultural products, radio, television and communication equipment, basic metals and food at manufacturing.

These rises were partly counteracted by lower annual rates of change in the production price indices for tobacco products, electricity, rubber and rubber products, and wood and wood products, Stats SA said in a statement.

The 1,4% decrease in the PPI between January 2003 and last month resulted from a 2,4% point drop in the price index for imported commodities.

This was partially counteracted by a 1% annual increase in the price index for locally produced commodities.

Stats SA said the annual rate of change in the PPI for locally produced commodities for local consumption came in at 1,4% rcent last month, compared with December’s 0,6%.

This was the result of annual increases in the price indices for beverages, transport equipment, metal products, and mining and quarrying products.

The annual rate of change in PPI for imported commodities was -8,9% last month, compared with -8,2% in December.

The drop was due to ”relatively large” annual decreases in the price indices for commodities such as mining and quarrying products, non-electrical machinery, chemicals and chemical products, office, accounting and computing machinery, transport equipment and food at manufacturing. — Sapa