January PPI rises to 10.4 % in SA

Stats SA said the PPI for domestic output increased by 1% from December to January.

Year-on-year producer price inflation (PPI) rose to 10.4% in January up from December's rate of 9.5%, Statistics SA reported today. PPI inflation indicates what consumers are likely to pay in stores in future.

It said the rise in factory gate inflation could be explained by increases in the producer price indices for agricultural products, mining and quarrying, food at manufacturing, beverages, products of petroleum and coal, chemicals and chemical products, rubber and plastic products and electricity.

These increases were partly offset by a decrease in the year-on-year PPI for basic metals. Stats SA said the PPI for domestic output increased by 1% from December to January.

The PPI for exported commodities showed an annual rate of increase of 8.2% last month, 0.3% higher than the corresponding annual rate of 7.9% in December. From December to January the PPI for exported commodities increased by 0.5%.

Imported commodities increased by 2.1%
The PPI for imported commodities showed an annual rate of increase of 12.3% last month up 1% from 11.3 % in December. From December to January the PPI for imported commodities increased by 2.1%.

Stats SA has changed the method it uses to calculate the PPI and has updated the weights in the index for the first time in a decade.

The publication of January's PPI figures came after Stats SA delayed the release of the figure, which was due out last Thursday, twice.

This was caused by programming difficulties due to the introduction of the new PPI structure and weights. - Sapa