Producer prices decline

South Africa’s producer price index (PPI) registered deflation of -3,8% year-on-year (y/y) in July from -4,1% y/y in June, Statistics South Africa (Stats SA) data on Thursday showed. This is the 11th consecutive decrease in the producer price inflation headline number.

The PPI increased 2,9% on a monthly basis after June’s monthly increase of 1,5%.

The PPI was expected to have decreased at 4,5% y/y, according to a survey of 12 leading economists by I-Net Bridge, with forecasts ranging from -3,4% to -5,5% y/y.

“It’s a bit disappointing,” said George Glynos, market analyst at ETM. “We were expecting a bit more negative number than that. Again, I would argue for leaving rates on hold for now.”

Economist Mike Schussler said the figure “shows the stickiness of prices is still a concern. We are starting to see an upward trend in commodity prices, but we still have another two to three months before we will see these filter through to the PPI figures.

“Yes, we are going through a recovery in commodities, but some of that recovery is inflationary to South Africa.” — I-Net Bridge

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Chile’s lithium a poisoned chalice

It provides profit to billionaires but exhausts the land and its people

World Lion Day: Five young lions rescued in Romania arrive...

The country’s captive lion population of 9 000 is three times the size of the wild lion population.

Marikana lawsuits to be finalised by end of August

The state has already paid out R170-million in claims following the August 2012 massacre

Keeping it surreal: The game in Spain is mainly insane

Just when you thought the Spanish off season couldn’t get any weirder, Lewandowski and his costly colleagues might be left in lavish limbo
Advertising

press releases

Loading latest Press Releases…
×