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Johannesburg - South Africa's producer price index (PPI) registered growth of +6.8% year-on-year (y/y) in May compared with +5.5% y/y in April, Statistics South Africa (Stats SA) data on Thursday showed.
The PPI increased 0.2% on a monthly basis after April's monthly increase of 1.5%.
The PPI was expected to have reached 7.1% y/y, a survey by I-Net Bridge found.
Forecasts among the 11 leading economists surveyed ranged from 6.2% y/y to 8.2% y/y.
Exports were at +4.8% in May from 0.2% y/y in April, while imports were at 6.5% y/y from 5.0% y/y.
Carmen Altenkirch, economist at Nedbank said: "Producer inflation picked up further, rising to its highest level since February 2009.
"Higher commodity prices, which contribute roughly 20% to the PPI basket, are the main driver of producer inflation.
"Slower global growth and weaker demand from China should contain commodity price gains during the remainder of the year.
"Price increases for manufactured goods, which make up around 60% of the basket, will remain subdued, constrained by weak infrastructure and capital spending, both locally and globally, as still uncertain economic prospects makes companies reluctant to invest in new capacity."
- I-Net Bridge