Producer prices up 2.1% in August on rising food and beverage inflation

SOUTH Africa’s annual producer price inflation (PPI) for final manufactured goods quickened to 2.1% in August, up from 1.5% in July, Statistics South Africa (Stats SA) reported yesterday.

- YOGASHEN PILLAY

The PPI rose 0.3% on a monthly basis, marking a period of rising inflationary pressures, particularly driven by key sectors such as food products and beverages.

Stats SA said the biggest boost to the headline figure came from food, beverages and tobacco products, which grew 4.3% year-on-year, contributing 1.3 percentage points to overall inflation. Monthly increases were mainly driven by food, beverages and tobacco, coke, petroleum, chemical, rubber and plastics, and metals, machinery and computing equipment.

The PPI for intermediate manufactured goods climbed to 6.5% y/y in August from 6.4% in July, with basic and fabricated metals providing the largest push. Month-on-month, the index also rose 0.3%, supported by higher chemical, rubber and plastic products as well as basic metals.