Producer prices drop for first time since January

accreditation
0:00
play article
Subscribers can listen to this article
Getty

South Africa’s producer inflation rate fell for the first time since January and by more than forecast after fuel costs declined, amid signs they’ll ease further.

The cost of final manufactured goods climbed 16.6% in August, compared with a nine-year high of 18% a month earlier, according to data published Thursday by Statistics South Africa. The rate was lower than the 17.5% median estimate of eight estimates in a Bloomberg survey. Prices fell 0.5% in the month.

Domestic fuel prices have dropped for the past two months, after reaching a record in July on the rise in global crude prices stemming from Russia’s war with Ukraine. The cost of food products, beverages and tobacco products increased slightly in the month, while prices for chemicals, rubber and plastic products fell.

Petrol and diesel price cuts in September may be followed by a further decline in the gasoline price next month, on the back of the lower global oil price,” Investec Bank economist Lara Hodes said in a research note.

“Producer price inflation appears to have peaked in line with easing global price pressures, which have helped to moderate local fuel prices and food inflation,” Nedbanksaid in a research note.

The producer-inflation data comes after consumer inflation slowed in August, after reaching the highest rate in more than a decade in July. The South African central bank said last week it expects inflation to peak in the third quarter and average 6.5% this year.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.37
+0.1%
Rand - Pound
21.40
+0.2%
Rand - Euro
18.91
+0.0%
Rand - Aus dollar
12.28
-0.0%
Rand - Yen
0.13
+0.0%
Platinum
1,002.52
-1.0%
Palladium
1,638.67
-0.6%
Gold
1,924.99
-0.2%
Silver
23.47
-1.1%
Brent Crude
85.46
+1.1%
Top 40
73,832
+0.6%
All Share
79,942
+0.6%
Resource 10
75,444
-0.5%
Industrial 25
102,922
+0.6%
Financial 15
16,426
+1.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders