Producer inflation continues to slow
Food and fuel helped bring producer inflation down further, though the rise in the producer price index was a little bigger than expected
Producer inflation slowed further in July, following a surprisingly sharp slowdown in June, thanks largely to food and fuel price dynamics.The producer price index (PPI) for final manufactured goods — the headline figure — rose 3.6% in July from a year earlier, down from 4% in June.That was slightly higher than expectations, though: Investec had projected PPI inflation to moderate slightly to 3.3% year on year in June while Trading Economics expected inflation to moderate to 3.4%.From June 2017 to July 2017 the PPI for final manufactured goods increased by 0.5%.Food and fuel price dynamics were key influencing factors on the headline PPI outcome. The easing of the drought and improved agricultural production has continued to bring down food prices. At 25.17%, the food category is the largest portion of PPI.The main contributors to the annual rate were food products, beverages and tobacco products, which contributed 1.2 percentage points; wood and paper products, which contributed 0....
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.