Headline producer inflation, which measures the change in prices of final manufactured goods, has continued to decline. The annual rate fell to 3,5% in January 2015, down from 5,8% in December 2014 and a peak of 8,8% in April 2014. Falling prices for coal and petroleum products continued to drive producer inflation down, while higher prices for tobacco, beverages and food products placed upward pressure on inflation.
The prices for final manufactured coal and petroleum products were -29,4% lower in January 2015 compared with January 2014, brought about mainly by decreases in prices for both petrol (-34,0%) and diesel (-32,0%).
Prices for meat products rose by 15,4% year-on-year, with noticeable increases in the prices for frozen chicken (19,0%) and meat pies (22,4%). Dairy products rose by 10,7%, with increases in fresh full cream milk (18,2%), diary cream (15,0%) and mozzarella cheese (13,4%). Tobacco prices rose by 10,2%.
The producer price index (PPI) for final manufactured goods decreased by 1,1% month-on-month in January 2015. Coal and petroleum products contributed most to the decrease, dropping by 14,6%. A slight appreciation in the rand against the euro resulted in a slight decrease in the prices of transport equipment exported to Europe, including motor vehicles and motor vehicle parts. Prices for transport equipment decreased by 0,8% in January 2015 compared with December 2014.
Other year-on-year PPI figures from the publication:
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