https://www.engineeringnews.co.za
Paper|transport|Equipment|Products
Paper|transport|Equipment|Products
paper|transport|equipment|products

SA producer inflation races higher for the second month

Groceries

Photo by Reuters

26th October 2023

By: News24Wire

  

Font size: - +

September’s annual producer price index accelerated for a second consecutive month to 5.1% from 4.3% in August. This was hotter than economists expected. 

The main contributor was food products, beverages and tobacco products, which increased by 4.4% year-on-year and contributed 1.1 percentage points, according to Stats SA. That was followed by metals, machinery, equipment and computing equipment, then paper and printed products and finally transport equipment.

SA Reserve Bank Governor, Lesetja Kganyago, warned at the Monetary Policy Committee meeting last month that food prices may increase further and put pressure on inflation. The reasons behind climbing food costs include volatile oil prices, a depreciating rand and weather events that have damaged crops.

The gauge rose 1.5% month-on-month.

With PPI showing that domestic producers are receiving higher prices for their goods, a knock-on effect typically follows for consumer prices. Earlier this month data from Stats SA showed annual consumer price inflation accelerate to 5.4% in September from 4.8% in August – this was also the second consecutive increase. It was in line with economists' expectations.

Neither measure bodes well for the interest rate decision at the end of November. In sub-Saharan countries with still rising inflation, "further monetary tightening may be required until there are clear signs that inflation is cooling", the International Monetary Fund said in a recent report.

The country’s benchmark rate, at 8.25%, is already at a 14-year high, but so far data is signalling that the MPC may have to hike it further in order to try quell inflation, which eats away at the value of the rand.

 

Edited by News24Wire

Comments

Showroom

M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (16/02/2024)
16th February 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.277 0.33s - 182pq - 2rq
Subscribe Now