S.Africa's September PPI slows down to 6.9% - CNBC Africa

S.Africa's September PPI slows down to 6.9%

Southern Africa

by Trust Matsilele 0

Tobacco among the main contributors to the annual PPI. PHOTOS: hartford

According to Statistics South Africa’s recent PPI report, headline PPI dropped to 6.9 per cent from 7.2 per cent in August.

(READ MORE: S.Africa’s PPI slows to 8.7 per cent in May)

“Food products, beverages and tobacco products remain the main contributors to the annual PPI,” said Stats SA.

“Monthly PPI for agriculture increased with 3.2 per cent in September due to higher prices of live animals and fruit and vegetables.”

The report also said PPI for mining decreased with 1.2 per cent in September because of lower prices for coal, gold, platinum and other metal ores.

“The monthly PPI for September for electricity decreased with 27.7 per cent due to the switch to summer tariffs in September,” added Stats SA report.

“The main contributors to the annual rate of 6.9 per cent were food products, beverages and tobacco products (7.5 per cent year-on-year and contributing 2,7 percentage points),” read part of the report.

“Metals, machinery, equipment and computing equipment (8.6 per cent year-on-year and contributing 1.2 per cent) and coke, petroleum, chemical, rubber and plastic products (5.3 per cent year-on-year and  contributing 0.9 of a percentage point).”

(READ MORE: S.Africa’s June PPI drops to 8.1%)

The annual percentage change in the PPI for intermediate manufactured goods was 7.0 per cent in September 2014 compared with 6.7 per cent in August 2014.

Stats SA said the PPI for intermediate manufactured goods increased by 0.1 per cent from August 2014 to September 2014.

The main contributors to the annual rate of 7.0 per cent were basic and fabricated metals contributing 6.6 per cent year-on-year and contributing 2.6 per cent.

Chemicals, rubber and plastic products accounted for 6.8 per cent year-on-year and contributing 2.1 percentage points.

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