Producer prices rise in February

2010-03-25 13:04

PRODUCER prices rose in February, Statistics SA said today.


Prices at the factory gate rose by 3.5% year-on-year in February

from 2.7% year-on-year in January, the agency said.


Producer price inflation came in at 0.4% month-on-month in February

compared with 1.3% in January.


“The number was a little bit better than expected,” Nedbank

economist Dennis Dykes said.


“However, we will now see producer inflation increasing quite a bit

over the next few months as it’s coming off a low base.”


Dykes said that the positive aspect of the data was the

confirmation that food price inflation remained low.


“This was also reflected in consumer price inflation figures

yesterday.”


Dykes doubted that today’s producer price inflation data would have

any influence on the rates decision expected later in the day.


“Not even the consumer price inflation data would probably have any

influence. Yes, the figure was psychologically comforting – but the SA Reserve

Bank looks ahead at what will happen in 2011 and 2012,” Dykes said.

 

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