Producer price inflation expected in 2025 to rise despite dipping in February

PRICES for finalised manufactured goods in South Africa are expected to tick up during the course of the year in spite of the Producer Price Inflation (PPI) moderating in February.

- SIPHELELE DUDLA

According to data from Statistics South Africa (Stats SA) on Thursday, the PPI slowed to 1.1% in February from 1.3% in January, and below market forecasts of 1.3% increase.

This comes on the back of the headline consumer price inflation remaining stubbornly elevated and ratcheting upwards at 5.3% in February as it is gradually rising.

Stats SA said prices slowed down a bit from 4.4% to 4.2% for food products, beverages and tobacco products. I BLOOMBERG

A breakdown of the food market reveals that fruit and vegetable prices decreased from 9.4% to 7.5% year-on-year previously.

Minerals decreases were recorded for dairy products, oils and fats, fish and fish products and other food products.

Conversely, meat prices picked up year-on-year from 1.9% to 2.6% in February, while starches and maize products, animal feeds and grain mill products inflation rose to 7.1% from 5.9% previously.