Producer inflation drops in March, with the total cost of food production falling 1.2%
Farm and factory gate inflation, as measured by the annual change in the producer price index (PPI), decelerated to 3.7% in March from 4.2% in February. As expected, the fall was similar to March’s consumer price index (CPI), which dropped to its lowest level in seven years down to 3.8%, from 4% in February driven by a decline in the fuel price and low food price inflation. The main contributors were coke, petroleum, chemical, rubber and plastic products (1.2 percentage points), transport equipment (0.7 of a percentage point) and paper and printed products (0.6 of a percentage point). Statistics SA reported on Thursday that the cost of food production fell by 1.2%. Items that were cheaper in March included oils and fats, grain mill products, starches and starch products, animal feed and sugar. Electricity and water prices remained at 3.5%. FNB chief economist Mamello Matikinca had expected to see a further drop in food producer inflation in March given the high base of early 2017, b...
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.