Producer inflation slows
The cost of manufacturing increased marginally between July and August, according to figures released by Statistics SA.
|||Johannesburg - The cost of manufacturing has increased marginally between July and August, according to figures released on Thursday by Statistics SA.
The official government agency for stats says the annual percentage change in the producer price index for final manufactured goods was 7.2 percent in August 2016.
From July 2016 to August 2016, the PPI for final manufactured goods increased by 0.1 percent.
PPI for final manufactured goods for August 2016 was 7.2 percent year-on-year, Stats SA figures show.
Paul Sirani, chief market analyst at Xtrade, says a dip in August’s PPI suggests that the pressures of the drought, which weighed heavily on food production earlier in the chain, have subsided. It will be interesting to see if next month’s figures show further relief in the production sector, as substantial cuts to petrol and diesel take effect.
“All eyes are now on Friday for South Africa with a couple of key indicators set to be published. Third-quarter consumer confidence is expected to ease off slightly - to -10 from -11 - and anything more positive than that could boost the rand.
“People will also be watching trade balance figures, with many predicting that figures will bump back up again.”
IOL