South Africa’s January producer price index (PPI) data will be released at 11.30am on Thursday March 6, Statistics South Africa said on Monday.
The data, which will include changed weightings and new products in the PPI basket, was initially scheduled for release on February 28. It was delayed twice on problems related to the introduction of the new structure.
The new PPI basket will result in the weighting for mining doubling — due to the inclusion of gold — while manufacturing will decrease slightly.
Analysts said the new structure could affect the relatively close link between producer and consumer inflation (CPI).
”The inclusion of gold, which was excluded in the old basket, is the more striking development,” said Monale Ratsoma, macros strategist at Absa Capital.
”The large implied weight of gold, which has little relevance to consumer inflation, suggests that the relationship between PPI and CPI will be weakened.” — Reuters