Producer prices in South Africa increased 6.9 percent year-on-year in October of 2018, following a 6.2 percent gain in September and above market expectations of 6.3 percent. It was the highest producer inflation rate since December of 2016, as price advanced further for food, beverages and tobacco (2.5 percent compared to 2.1 percent in September); coke, petroleum, chemical, rubber and plastic products (16.6 percent compared to 13.6 percent) and paper and printed products (6.0 percent compared to 4.9 percent). Also, cost of furniture and other manufacturing fell at a softer pace (-1.1 percent compared to -2.4 percent). Meanwhile, prices slowed for metals, machinery and computer equipment (4.6 percent compared to 4.7 percent); transport equipment (10.5 percent compared to 12.7 percent) and electrical machinery and communication (5.9 percent compared to 6.1 percent). On a monthly basis, producer prices went up 1.4 percent, after rising 0.5 percent in the prior month. Producer Prices Change in South Africa averaged 5.73 percent from 2013 until 2018, reaching an all time high of 8.80 percent in April of 2014 and a record low of 2.61 percent in February of 2015.
Producer Prices Change in South Africa is expected to be 6.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in South Africa to stand at 6.30 in 12 months time. In the long-term, the South Africa Producer Prices Change is projected to trend around 5.00 percent in 2020, according to our econometric models.