Producer price inflation — or the increase in factory gate prices — was 6,7% year-on-year in February, up from 5,5% in January, Statistics South Africa said on Thursday.
“This rate is 1,2 percentage points higher than the corresponding annual rate of +5,5% in January 2011,” Stats SA said.
Producer price inflation (PPI) measures the average changes in prices received by domestic producers for their output.
The higher annual rate was driven by increases in mining and quarrying, basic metals and petroleum and coal products.
Investec Group economist, Kgotso Radira said PPI was “much higher than the consensus estimate” of 5,9% year on year.
“PPI inflation has mainly been driven by higher commodity prices and further increases will push PPI inflation even higher,” he said in a statement. — Sapa