South Africa’s annual producer price inflation for final manufacturing stood at 4.5 per cent in February 2024, showing a marginal decrease from the 4.7 per cent recorded in January of the same year, as per official statistics released on Thursday.
The month-on-month increase in the producer price index (PPI) was noted at 0.5 per cent for February 2024.
Analysis reveals that specific sectors played pivotal roles in shaping the headline PPI annual inflation rate.
Among the significant contributors were food products, beverages, and tobacco products, which experienced a year-on-year (YoY) increase of 4.3 per cent, thereby contributing 1.2 percentage points to the overall inflation rate.
Similarly, petroleum, chemical, rubber, and plastic products sector saw a 4.0 per cent YoY increase, accounting for 1.0 per cent contribution to the inflation rate.
Furthermore, the metals, machinery, equipment, and computing equipment sector witnessed a 5.2 per cent YoY increase, contributing 0.7 per cent to the overall inflation rate, as depicted in Figure 1.1.
