This is according to the latest Producer Price Index (PPI) report released by Statistics SA on Thursday. The month-on-month change also held at 0.5%, signalling stable cost pressures on locally produced goods despite mounting increases across key input categories.

The report reveals that food products, beverages and tobacco products were the largest positive contributors to the annual inflation rate, registering a year-on-year increase of 4.7% and contributing 1.4 percentage points to the headline figure. Every month, the same category contributed 0.3 of a percentage point.

While the headline figure remained flat, intermediate manufactured goods recorded a sharp annual increase of 8.5%, up from 7.4% in March. This rise was driven by basic and fabricated metals, which soared by 13.2% year-on-year, adding 6.6 percentage points to the intermediate goods inflation.

Electricity and water costs also surged, posting an annual increase of 11.2% and a monthly spike of 6.4%. The cost of electricity alone jumped by 12.5% compared to the same month last year. This represents a continued strain on production inputs and could pose future inflationary risks if passed on to consumers.

The mining sector saw a more modest increase in its producer prices, up 4.1% annually and 3.2% month-on-month. Notably, prices for gold and other metal ores rose by a staggering 21.7% year-on-year, underscoring the volatility in commodity markets.

Meanwhile, agriculture, forestry and fishing also recorded notable price movements, with producer inflation in the sector rising to 4.4% in April, from 2.4% in March. Crop and horticulture products, particularly fruits and vegetables, saw significant year-on-year gains of 12.3%.

As input costs for intermediate goods and utilities continue to rise, producers may face increasing pressure to adjust output prices, potentially impacting consumer inflation in the months ahead.

--ChannelAfrica--