Producer prices rise slightly in September, but experts say no cause for concern

SOUTH Africa's producer price inflation (PPI) for final manufactured goods edged slightly higher in September, rising to 2.3% year-on-year from 2.1% in August, according to data released by Statistics South Africa (Stats SA) on Thursday.

- YOGASHEN PILLAY

Economists say the marginal increase is not a sign of inflationary pressure and remains comfortably below the consumer inflation rate.

Stats SA said the PPI eased 0.1% month-on-month, with the main positive contributors to the annual inflation rate being food products, beverages and tobacco, which rose 3.8%.

The main drag on the monthly rate came from coke, petroleum, chemical, rubber and plastic products, which fell 0.6%. Stats SA also noted a strong increase in intermediate manufactured goods, which rose 7.6% year-on-year, up from 6.5% in August, while mining PPI jumped to 16% from 8.5% in the previous month. By contrast, agriculture, forestry and fishing registered a decline of -1.1%, reversing the 3% annual rise seen in August.