South African producer prices for all commodities rose by 1,4% in the 12 months to the end of September from a 1,1% increase for the 12 months to end August, Statistics South Africa (Stats SA) said on Thursday. On the month, the producer price index (PPI) was -0,9% compared with a 0,1% month-on-month (m/m) drop in August.
Overall imported prices continued with the year-on-year (y/y) deflation moving to -1,7% in September from -2,4% in August and November’s record of -9,6% y/y. This is now the 18th consecutive month that there has been y/y deflation in imported producer prices.
Locally produced inflation rose to 2,4% y/y in September from 2,3% y/y in August and 1,9% y/y in July.
The annual increase of 1,4% in the PPI for all commodities for South African consumption is due to an annual increase in the price index for locally produced commodities (+1,8%), which was partially counteracted by an annual decrease in the price index for imported commodities (-0,4%).
Stats SA said the higher annual rate of 1,4% can be explained by increases in the annual rates of change in the production price indices for:
Products of petroleum and coal, of which the rate increased from 9,9% at August 2004 to 14,1% at September 2004.
Basic metals, of which the rate increased from 5,9% at August 2004 to 6,9% at September 2004.
Metal products, of which the rate increased from 4,6% at August 2004 to 5% at September 2004.
Transport equipment, of which the rate increased from 0,5% at August 2004 to 1,3% at September 2004.
However, the higher annual rates of change were partially counteracted by a decrease in the annual rate of change in the production price index for agricultural products, of which the rate decreased from -2,5% at August 2004 to -3,9% at September 2004.
The annual percentage change in the PPI for locally produced commodities for consumption in South Africa was higher at 2,4% in September, compared with 2,3% in August.
The annual increase of 2,4% in the PPI for locally produced commodities for consumption in South Africa was due to relatively large annual increases in the price indices for mining and quarrying products (0,8%), products of petroleum and coal (0,5%), beverages (0,4%), basic metals (0,3%), non-metallic mineral products (0,2%) and metal products (0,2%).
These annual increases were partially counteracted by annual decreases in the price indices for agricultural products (-0,3%); paper, paper products and printing (-0.2%); food at manufacturing (-0.1%); and textiles and made-up goods (-0.1%).
The PPI for imported commodities shows an annual rate of decrease of 1,7% in September 2004, compared with a decrease of 2,4% in August. From August to September, the PPI for imported commodities increased by 0,8%, while the seasonally adjusted index remained unchanged.
The annual decrease of 1,7% in the PPI for imported commodities is due to relatively large annual decreases in the price indices for office, accounting and computing machinery (-0.6%); non-electrical machinery and equipment (-0.4%); and chemicals and chemical products (-0.3%).
These annual decreases were partially counteracted by annual increases in the price indices for mining and quarrying products (0,5%), basic metals (0,2%), transport equipment (0,2%) and products of petroleum and coal (0,1%). — I-Net Bridge