Why Producer Price Inflation Slowed in January

By Sunburst Editor

What: According to figures released by Stats SA today, the annual percentage change in the PPI for final manufactured goods was 3, 5 percent in January 2015. From December 2014 to January 2015, the PPI for final manufactured goods decreased by 1, 1 percent.

PPI for final manufactured goods for January 2015 = +3, 5 percent y/y.

Why: The slowdown in PPI in January was in line with expectations by the market amid lower price increases of intermediate manufactured goods, and decreased oil prices.

The main contributors to the annual rate of 5.8% were food products, beverages and tobacco products; and metals, machinery, equipment and computing equipment.

The annual percentage change in the PPI for intermediate manufactured goods was 3.4 percent in January compared with 6.1 percent in December. The main contributors were basic and fabricated metals and chemicals, rubber and plastic products.

The annual percentage change in the PPI for electricity and water was 9 percent in January compared with 8.9 percent in December.

The annual percentage change in the PPI for mining was -1.7 percent in January compared with 1.8 percent in December.

The annual percentage change in the PPI for agriculture, forestry and fishing was -1.8% in January compared with 2.3 percent in December.

One should expect the PPI to increase in the coming months following increased fuel taxes and prices, and increase in manufacturing costs.

 

For more information, contact info@sunburstafrica.co.za

Leave a Reply

Your email address will not be published. Required fields are marked *