Annual producer inflation slowed sharply in September, with economists saying there could be food price relief in 2017 should the trend continue.Headline producer price index (PPI) growth decelerated to 6.6% year on year in September from 7.2% in August.The main contributors to the annual rate were food, beverages and tobacco products; and metals, machinery, equipment and computing equipment.Although food inflation remained high at 13.1% year on year in September, it decelerated slightly from 13.4% in August.The deceleration in producer inflation, particularly food products inflation, is good news and suggests that consumer inflation could also ease in 2017 on a slower pace of increase in food prices.This would support stable interest rates and possibly even a cut in the second half of 2017.More good news, Investec group economist Annabel Bishop said, was that planting for a number of crops was likely to increase substantially in 2017 on higher expected rainfalls, which should moder...
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