PPI slows to 6.9%

Johannesburg - The producer price index (PPI) slowed to 6.9% year-on-year (y/y) in September from 7.2% in August, Statistics South Africa said on Thursday.

Economists had expected PPI to slow to 7.0% y/y.

The annual percentage change in the PPI for final manufactured goods, which is the change on a yearly basis, was 6.9% in September 2014.

The annual percentage change in August 2014 was 7.2%.

The main contributors to the annual rate of 6.9 were food products, beverages and tobacco products (7.5% year-on-year), metals, machinery, equipment and computing equipment (8.6% year-on-year) and coke, petroleum, chemical, rubber and plastic products (5.3% year-on-year).

The contributor to the monthly increase of 0.1% was metals, machinery, equipment and computing equipment (0.5 percent month-on-month).

The annual percentage change in the PPI for intermediate manufactured goods was seven percent in September, compared to 6.7% in August.

The annual percentage in PPI for electricity and water was 7.4% in September, while the annual percentage change for mining was 5.1% and agriculture, forestry and fishing, 4.4%. Stats SA defines PPI as a measure of the change in the price of goods, either as they leave their place of production or as they enter the production.

Monthly #PPI for Electricity decreased with 27,7% due to the switch to summer tariffs in September #StatsSA http://t.co/LTMxKsKvo8

— Stats SA (@StatsSA) October 30, 2014