Producer prices in South Africa increased 6.8 percent year-on-year in November of 2018, slowing from a 6.9 percent gain in October and in line with market expectations. Prices eased for food, beverages and tobacco (2.3 percent compared to 2.5 percent in October); metals, machinery and computer equipment (4.0 percent compared to 4.6 percent); transport equipment (8.9 percent compared to 10.5 percent) and electrical machinery and communication (5.4 percent compared to 5.9 percent). Additionally, cost of furniture and other manufacturing fell further (-2.6 percent compared to -1.1 percent). On the other hand, prices rose at a faster pace for coke, petroleum, chemical, rubber and plastic products (17.1 percent compared to 16.6 percent) and paper and printed products (6.4 percent compared to 6.0 percent). On a monthly basis, producer prices went up 0.4 percent, after increasing 1.4 percent in the prior month. Producer Prices Change in South Africa averaged 5.74 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.