GBN Press Offices
The Market Maverick

Send  Print  Share  RSS  Twitter  23 Sep 2009

SA Economy: Producer Price Deflation


 deflation   Johannesburg, Sep 23 (I-Net Bridge) - South Africa`s producer price index (PPI) registered deflation of  4.0% year-on-year (y/y) in August from  3.8% y/y in July, Statistics South Africa (Stats SA) data on Wednesday showed.
    The slight increase in July had followed ten consecutive months of decreases in the producer price inflation headline number.
    The PPI increased 0.3% on a monthly basis after July`s monthly increase of 2.9%.
    The PPI was expected to have decreased at 3.5% y/y according to a survey of 12 leading economists by I-Net Bridge, with forecasts ranging from  3.3% to  4.2% y/y.
    Exports were at  9.2% y/y from  9.3% in July.
    Imports were at  17.8% y/y from  17.5% the month before.
    Stats SA attributed the lower rate in August compared with July to decreases in agricultural products (-1.7 percentage points to  2.0), wood and wood products (+3.8 to +3.4), chemicals (-3.7 to  5.2), rubber and plastic (+2.1 to +1.2), non-metallic minerals (+13.6 to +7.1), metal products (+3.4 to 0.0), non-electrical machinery and equipment (+9.5 to +0.6), transport (+8.3 to +1.5) and other manufacturers (+1.7 to  0.4).
     These were counteracted by increase in mining and quarrying (-15.2 to 14.6), petroleum and coal (-32.6 to  30.2), basic metals (-15.5 to  13.2) and electricity (+27.4 to +28.6).
    The jump into double digits in October 2006 was the first double-digit increase since December 2002. 
    The annual PPI in 2008 increased to 14.2% from a revised 10.9% (10%) seen in 2007 and from 7.7% in 2006. The annual average for PPI in 2005 was just 3.1%. PPI was at an average of 0.6% in 2004, 1.7% in 2003 and 14.2% in 2002.
    The 2004 average was the lowest since 1959, when there was no change in producer prices. The lowest annual consumer inflation in the post-1945 period was also in 1959 at 1.1%.
    New weightings were introduced in the January 2008 data, but with no backdating. The new weightings now also make it difficult to use PPI as a leading indicator of CPI.
    I-Net Bridge, Tel: +27-11-280-0826,
    Copyright 2009 I-Net Bridge. All rights reserved.

Click here to find out more!
Home News Interviews Advertising Contact us Site Map
© 2010 All rights reserved

Newsletter Subscription

Subscribe to The Market MaverickNewsletter (it's free).

Thank You
Your email address has been added.

Email Address: