Experts calm as South Africa’s producer inflation rises to 2.9% in October

ECONOMISTS say there is little cause for concern despite South Africa's Producer Price Index (PPI) rising to 2.9% year-on-year in October 2025, up from 2.3% in September.

- YOGASHEN PILLAY

Statistics South Africa’s latest data shows that PPI actually declined by 0.1% month-on-month, signalling limited upward pressure on consumer inflation.

Stats SA reported that the biggest positive drivers of annual producer inflation were food, beverages and tobacco products, followed by coke, petroleum, chemical, rubber and plastic products, and furniture and other manufacturing.

Negative contributors to the monthly decline included food, beverages and tobacco, petroleum-related products, and electrical machinery and communications equipment.

Independent economist Ulrich Joubert said the increase came in below market expectations of 3.1%.