SA record producer inflation likely to dent sentiment

Prices of final manufactured goods rose by 13.1%, from 11.9% in March
Image: Bloomberg

South Africa’s producer inflation surged to a record high in April, beating analysts’ forecasts, which is likely to further sour manufacturing mood.

Prices of final manufactured goods rose by 13.1%, from 11.9% in March, according to data from Statistics South Africa. That’s the highest rate since the start of 2013, when the statistics office split its producer price index and started reporting five different measures for prices at the factory gate including agriculture, mining, electricity and water and intermediate manufactured goods. The median estimate of seven economists in a Bloomberg survey was 12%. The increase was driven by soaring costs of fuel, coal and food, beverages and tobacco.

The surge together with rolling blackouts instituted by state-owned power utility Eskom on all but three days this month will probably see Absa Group’s purchasing managers’ index, compiled by the Bureau for Economic Research, drop in May, after falling the most in nine months in April.

© 2022 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: