Producer prices in South Africa rose 4.1 percent year-on-year in January 2019, easing from a 5.2 percent gain December and below market consensus of 5.0 percent. It was the lowest producer inflation rate since March last year, as prices slowed for coke, petroleum, chemical, rubber & plastic products (5.6 percent from 8.9 percent in December); metals, machinery & computer equipment (3.4 percent from 3.7 percent); transport equipment (5.4 percent from 10.6 percent); and non-metallic mineral products (3.1 percent from 4.1 percent). Meanwhile, cost advanced further for food, beverages & tobacco (2.7 percent from 2.6 percent); paper & printed products (7.5 percent from 7.0 percent); textiles, clothing & footwear (3.4 percent from 3 percent) and electrical machinery & communication (5 percent from 4.8 percent). On a monthly basis, producer prices fell 0.8 percent, after declining 0.9 percent in the prior month. 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 6.70 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 6.00 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.