ECONOMIC WEEK AHEAD: Rising transport and food prices are likely to have fuelled producer inflation
A surge in the producer price index is expected because of global supply shortages and rising demand
Price pressures are building in the global and domestic economy, reflecting global supply shortages and rising demand. But statistical base effects due to the Covid-19 pandemic are also artificially boosting inflation data, making annual increases seem more pronounced than would otherwise be the case.
Last week, SA’s consumer price index (CPI) for April hit a 14-month high at 4.4% year on year, up from 3.2% year on year in March, driven mainly by rising transport and food prices...