Producer prices in South Africa rose 6.2 percent year-on-year in September of 2018, easing from a 6.3 percent gain in the previous month and above market consensus of a 6.05 percent increase. Prices slowed for coke, petroleum, chemical, rubber and plastic products (13.6 percent compared to 15.8 percent in August); paper and printed products (4.9 percent compared to 5.0 percent) and electrical machinery and communication (6.1 percent compared to 7.3 percent). Additionally, cost of furniture and other manufacturing fell further (-2.4 percent compared to -1.5 percent). Meanwhile, prices advanced faster for food, beverages and tobacco (2.1 percent compared to 1.5 percent); metals, machinery and computer equipment (4.7 percent compared to 4.3 percent) and transport equipment (12.7 percent compared to 10.9 percent). On a monthly basis, producer prices went up 0.5 percent, slowing from a 0.6 percent rise in the prior month and in line with market expectations. Producer Prices Change in South Africa averaged 5.71 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.