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SA's factory gate inflation rises to five-month high

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SA's factory gate inflation rises to five-month high

Photo by Bloomberg

28th September 2020

By: News24Wire

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The prices of goods leaving South Africa's farms and factories increased by 2.4% for August, the highest rate in five months.

Stats SA published its annual producer price inflation for August on Monday.

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This is the highest rate since March this year, when PPI increased by 3.3%. Factory gate inflation then dipped during SA's stringent lockdown, before picking up stream again in July.

The main contributor to the uptick in PPI for August was in the category of food products, beverages and tobacco products, which increased by 3.4% y/y.

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Monday's print was higher than the expectations of most economists, who had predicted a more moderate increase of between 1% and 2%.

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