Rising energy prices push PPI to 10.8% in December
Global supply-chain disruptions and higher oil prices are hitting manufacturers’ operating costs
Producer inflation accelerated more than expected in December, highlighting the effect of higher energy prices globally.
The producer price index (PPI) for final manufactured goods rose 10.8% year on year in December, up from 9.6% in November and above the Bloomberg median estimate of 10.2%.
The main contributors to the higher number included coke, petroleum, chemicals, rubber and plastic products, Stats SA said in a statement on Thursday. The product categories incorporate petrol and diesel prices, which are hovering near record highs.
Other contributors were food products, beverages and tobacco products; metals, machinery, equipment and computing equipment. On a basis, PPI rose 1.3%.
“Global supply chain issues and increased transportation costs have manifested in increased operating costs for manufacturers; this is evident in the acceleration in intermediate PPI inflation to multiyear highs,” said Lara Hodes, economist at Investec before the latest data was published.
The annual percentage change in the PPI for intermediate manufactured goods was 23.1% in December 2021, unchanged from November 2021.