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The average annual change for 2011 was 8.4% compared with 6.0% in 2010.

The PPI, on a monthly basis, was 0.3% after decreasing slightly between November and December 2011.

The PPI was expected to clock in at 9.5% y/y in January, a survey by I-Net Bridge found.

Forecasts among five leading economists surveyed ranged from 8.8% y/y to 9.6% y/y.

Export producer inflation was recorded at 8.7% y/y in January compared to 10.5% y/y in December, and -0.6% month on month.

Imported producer inflation jumped by 15.5% y/y in January from 16.4% y/y in December, and recorded a 0.7% month on month increase.

Stats SA said the lower y/y rate in January 2012 could be explained by decreases in the annual rate of change in the PPI for mining and quarrying, where the annual rate decreased from 10.1% in December 2011 to 7.7% in January 2012; products of petroleum and coal, where the annual rate decreased from 31.8% to 26.6%; and agriculture, with an annual rate decrease from 11.8% to 7.9%.

These decreases were partially counteracted by increases in the annual rate of change for food at manufacturing, where the annual rate increased from 10.2% in December 2011 to 10.9% in January 2012; basic metals, where the annual rate increased from 4.9% to 5.4%; chemical and chemical products, whose annual rate increased from 5.9% to 6.8%; metal products, with an annual rate increase from 10.7% to 11.4%; and forestry, with an annual rate increase from 3.4% to 5.3%.

The monthly increase of 0.3% in the PPI for domestic output was mainly due to monthly contributions from increases in the price indices of all other groups; mining and quarrying; chemical and chemical products; and basic metals.

These increases were partially counteracted by a decrease in the price index of agriculture (0.4 of a percentage point).

The annual increase of 8.7% in the PPI for exported commodities was mainly due to, among others, annual contributions from increases in the price indices of mining and quarrying; basic metals; chemicals and chemical products; all other groups; nonelectrical machinery and equipment; products of petroleum and coal; metal products; and transport, Stats SA reported.

The monthly 0.6% decrease in the PPI for exported commodities was mainly due to a monthly contribution from a decrease in the price index of basic metals.

Stats SA reported that the annual increase of 15.5% in the PPI for imported commodities was mainly due to annual contributions from increases in the price indices of, among others, mining and quarrying; and chemicals and chemical products.

The monthly increase of 0.7% in PPI for imported commodities was due to monthly contributions from increases in the price indices of mining and quarrying; and all other groups.