{"id":727442,"date":"2023-10-26T15:35:53","date_gmt":"2023-10-26T13:35:53","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=727442"},"modified":"2023-10-26T15:35:53","modified_gmt":"2023-10-26T13:35:53","slug":"warning-signs-for-inflation-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/727442\/warning-signs-for-inflation-in-south-africa\/","title":{"rendered":"Warning signs for inflation in South Africa"},"content":{"rendered":"\n<p>Producer price inflation (PPI) has grown, spelling bad news for South African consumers at the tills.  <\/p>\n\n\n\n<p>According to Stats SA, September&#8217;s headline PPI increased from 4.3% in August to 5.1% in September &#8211; slightly worse than the Bloomberg consensus of 5.0%.<\/p>\n\n\n\n<p>The main contributors to the headline PPI annual inflation rate were:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Food products, beverages and tobacco products (increased by 4.4% year-on-year and contributed 1.1 percentage points);<\/li>\n\n\n\n<li>Metals, machinery, equipment and computing equipment (increased by 6.5% year-on-year and contributed 1.0 percentage points);<\/li>\n\n\n\n<li>Paper and printed products (increased by 11.8% year-on-year and contributed 0.9 of a percentage point);<\/li>\n\n\n\n<li>Transport equipment (increased by 7.8% year-on-year and contributed 0.7 of a percentage point)<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/10\/stats-sa-ppi-.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"837\" height=\"490\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/10\/stats-sa-ppi-.jpg\" alt=\"\" class=\"wp-image-727454\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/10\/stats-sa-ppi-.jpg 837w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/10\/stats-sa-ppi--300x176.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/10\/stats-sa-ppi--768x450.jpg 768w\" sizes=\"auto, (max-width: 837px) 100vw, 837px\" \/><\/a><figcaption class=\"wp-element-caption\">Source: Stats SA <\/figcaption><\/figure><\/div>\n\n\n<p>On a month-on-month basis, PPI rose by 1.5%. <\/p>\n\n\n\n<p>On a monthly basis, the increase in coke, petroleum, chemical, rubber and plastic products (increased by 5.1% month-on-month and contributed 1.4 percentage points) was the primary source of the increase. <\/p>\n\n\n\n<p>This followed a rise in fuel prices in September amidst a weak rand and high global oil prices, with October&#8217;s print likely affected by the most recent fuel price increase. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"q9PE8q1euA\"><a href=\"https:\/\/businesstech.co.za\/news\/energy\/727366\/big-petrol-price-cut-coming-next-week\/\">Big petrol price cut coming next week<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Big petrol price cut coming next week&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/energy\/727366\/big-petrol-price-cut-coming-next-week\/embed\/#?secret=qlunqER2zI#?secret=q9PE8q1euA\" data-secret=\"q9PE8q1euA\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Food price pain <\/strong><\/p>\n\n\n\n<p>Although the manufactured food price inflation dropped from 5.6% in August to 4.4% in September, it still contributed 1.1% to the overall number due to its size in the PPI basket. <\/p>\n\n\n\n<p>Meat and meat product inflation increased from 0.2% y\/y in August to 1.8% y\/y in September, but the prices of grain mill products, starches products, and animal feeds dropped from 3.9% to 2.9% y\/y. <\/p>\n\n\n\n<p>&#8220;South Africa has benefitted from the deceleration in global food commodity prices, with the Food and Agriculture Organization of the United Nations\u2019 (FAO) food price index down -10.7% in September when compared to the same period in 2022,&#8221; Investec Economist Lara Hodes said. <\/p>\n\n\n\n<p>&#8220;Moreover, South Africa has a promising agricultural season, according to Agbiz, with the 2022\/23 maize harvest projected at 16,4 million. This is \u201c6% higher than the 2021\/22 season&#8217;s harvest and the second-largest harvest on record.&#8221;<\/p>\n\n\n\n<p>&#8220;Despite this, a number of <strong>upside risks remain, including challenges relating to the Black Sea Grain Deal and India&#8217;s rice exports ban, the avian flu outbreak and heightened weather disturbances (notably from El Nino<\/strong>).&#8221;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/726872\/money-is-flooding-out-of-south-africa-but-things-are-not-as-bad-as-they-seem\/\" target=\"_blank\" rel=\"noreferrer noopener\">Money is flooding out of South Africa \u2013 but things are not as bad as they seem<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Latest food and fuel inflation figures are not good news for South African consumers. <\/p>\n","protected":false},"author":95,"featured_media":697033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26,1498,1809],"class_list":["post-727442","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline","tag-investec","tag-stats-sa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/727442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=727442"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/727442\/revisions"}],"predecessor-version":[{"id":727470,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/727442\/revisions\/727470"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/697033"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=727442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=727442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=727442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}