South Africa’s producer inflation fell to 5.7% year-on-year in July, down sharply from 7.5% recorded in June, according to data released by Statistics South Africa on Thursday.
The decline marked a significant easing in price pressures at the producer level, suggesting slower growth in the cost of goods leaving factories and entering the broader economy.
On a monthly basis, the Producer Price Index (PPI) declined by 1.0% in July, Statistics South Africa said.
The latest figures point to a moderation in producer price pressures after the annual rate accelerated to 7.5% in June.
The month-on-month decline also indicates that producer prices contracted during July, reversing some of the upward pressure recorded in the preceding period.
Producer inflation measures changes in the prices received by producers for goods and services and can provide an indication of potential price pressures further along the supply chain.
The July slowdown comes as South Africa continues to monitor inflation trends and broader economic conditions, with changes in producer prices potentially influencing costs faced by businesses and consumers.
