Producer prices in South Africa increased 4.9 percent from a year earlier in July, easing markedly from a 5.8 percent rise in June and below market expectations of a 5.4 percent gain. That was the lowest producer inflation since February, mainly due to coke, petroleum, chemical, rubber & plastic products (4.0% vs 8.3% in June), on lower fuel prices. Cost also slowed for textiles, clothing & footwear (3.9% vs 4.6%) and transport equipment (4.3% vs 5.1%). In contrast, prices rose faster for food, beverages & tobacco (5.1% vs 4.8%); paper & printed products (8.4% vs 7.3%); non-metallic-mineral products (6.9% vs 6.2%); electrical machinery, communication & metering equipment (1.9% vs 0.9%) and furniture (5.9% vs 5.8%). On a monthly basis, producer prices dropped 0.2 percent, after increasing 0.4 percent in the prior month and against market estimates of a 0.2 percent gain. Producer Prices Change in South Africa averaged 5.73 percent from 2013 until 2019, 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 6.30 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 5.30 in 12 months time. In the long-term, the South Africa Producer Prices Change is projected to trend around 5.20 percent in 2020, according to our econometric models.