PPI declines to 3.4%

Statistics South Africa said on Thursday the rate of increase in the rise of producer price inflation (PPI) was continuing a falling trend.

 

The PPI hit a peak of 8.8 percent in April 2014.

 

The agency said the falling prices for coal and petroleum products continued to drive producer inflation down, but this was offset by higher prices for tobacco, beverages and food products, which placed upward pressure on inflation.

 

The prices for final manufactured coal and petroleum products were down 29.4 percent in January compared with January 2014.

 

Prices for meat products rose by 15.4 percent year-on-year, while dairy product prices rose by 10.7 percent.

 

The PPI for final manufactured goods decreased by 1.1 percent month-on-month in January 2015. For intermediate manufactured goods, it fell to 3.4 percent in January 2015 compared with 6.1 percent in December 2014.