Figures from Statistics South Africa on Thursday showed that South Africa’s producer price inflation accelerated in May.
The producer price index rose by 7.4 per cent year-on-year in May, following a 6.7 per cent increase in March. Economists had expected inflation to rise to 7.3 per cent.
The main contribution for the increase in prices came from coke, petroleum, chemical, rubber and plastic products, food products, beverages and tobacco products, and metals, machinery, equipment and computing equipment in May.
Producer prices for mining industry gained by 21.7 per cent annually in May and prices for electricity and water increased by 8.9 per cent.
Prices for agriculture, forestry and fishing and intermediate goods rose by 9.4 per cent and 15.2 per cent, respectively.
On a monthly basis, producer prices rose by 0.4 per cent in May. Economists had expected a 0.3-per-cent rise.