PRODUCER inflation accelerated in July, with the producer price index (PPI) rising 7.4% year on year, after a 6.8% increase in June.The PPI for final manufactured goods was expected to have accelerated marginally to 6.9% in July, from 6.8% in June, according to a median Business Day consensus forecast from a survey of six economists.Producer inflation ultimately feeds into consumer inflation, which the Reserve Bank targets for monetary policy.Investec economist Annabel Bishop said the year-on-year increase was “mainly due to a statistical base effect as PPI inflation dropped sharply a year ago”.Consumer inflation slowed to 6% in July, Statistics SA’s CPI data showed on Wednesday.However, the inflation outlook has become clouded after the rand’s recent run of strength was brought to an abrupt halt on Tuesday, when it emerged that Finance Minister Pravin Gordhan had been asked to appear before the Hawks in connection with the so-called “rogue unit” at the South African Revenue Service...
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